Eligibility of interest on borrowed funds for Section 54 / 54F exemption

[Pritesh Jain]

Dear all,
Whether interest payment on bank loan will be eligible for exemption in the following example, assuming Section 54 case and not 54F:

Longterm capital gain:- 20 lakhs
House construction cost :-18 lakhs
Interest paid on housing loan upto date of filing return of Income:- 1.5 laks

Would the exemption u/s 54 be equal to
View 1 - 18 lakhs
View 2 - 18 + 1.5 = 19.5 lakhs
View 3 - 18 (+ 1.5 = 19.5 lakhs - 54 exemption and / or deduction u/s24 for housing loan interest)

[srinivasan]

Dear All
The exemption under section 54 will be 18 akhs , th e cost of the new house
2. Rs 1.50 will be deduction  from th eincome from house property
3.80 C if any amount of loan repaid (exculding the intrest)
regards
srinivasan