Yes. You can do so.
This will allow the exemption from capital gains.
Loan from friends for property purchase
I have just sold my residential property whose payment is due in October.I am planning to buy the residential house with that money.We have selected a very good option but the issue is that the seller is asking for the money in September for registry otherwise he will cancel the deal.Can i borrow the registry amount from my friends as loan for 1 month so that once i receive my payment from the seller i will pay them back.In this way i will get the house which we have selected without any hassle with the buyer of our old house and seller of new house. Kindly note that we do not own any other residential.
Asked 6 years ago in Capital Gains Tax
Hi,
Yes, you can do so. Please don't take/repay any loan in cash and don't make any payment to your seller in the cash.
Ensure you enter into a loan agreement with your friend. It will help you at the time of assessment.
Please feel free to call revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Hi,
Yes, you may take the loan for purchase of new property before selling the old property.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
Hello,
Yes, you can avail an interest free loan from your friend. It should not be a problem.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Yes, sure you can,and you will also eligible for capital gain exemption.
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