Can a Person Claiming Exemption u/s 54 against capital Gain through purchase of new house, claim deduction u/s 80 C for repayment of principal amount on borrowing of same house and claim interest paid against the house property of the interest paid on borrowed capital u/s 24(B)
These are three separate deductions/ exemptions. Claiming one does not disbar the other. All three can be claimed simultaneously.
For claiming the deduction under section 54, it is not necessary that the same money is to be used.You can beg, borrow or steal and invest to get deductin . If it is out of borrowed funds you can get he benefit of section 80C /section 22 also
Even to get deduction u/s 54 also, there was no need to use the same proceeds for investment. Even the borrowed funds can be used as per the decisions reported in 45 DTR 208, 41 SOT 504 and 18 taxman.com 265. Ergo, you can proceed to claim all the deductions.
I assume there is along term capital gain.
1.If there is capital gain it would be straight taxed at 20% of the capital gain or there will be nil tax because of the exemption.
2.If there interest claiming u/s 24b well u can claim upto rs.1,50,000/- for a self occupied house and u can carry forward the loss.
3.I Assume there is no other income,claiming of 80C on repayment how can u do that when u dont have an income to show.You are already showing a Negative income then where is question to claim deduction
If im wrong please correct me.Learning is a process
As per sec. 112, there is no question of claiming any deduction under chapter VIA from the income computed under this head. If your income is positive then only u can claim deduction under chapter VIA. If ur income is in negative, Where is the question of claiming any deduction. Chpater VIA deductions are meant for reducing tax liability, if any. I(f there is no tax liability at all, there is no question of claiming any deduction.