I have sold a long term capital asset, a residential plot for Rs.100 that was originally bought for Rs.60. In an other transaction done immediately after that, I have purchased a flat with a total cost of Rs. 60, out of which I have contributed Rs.20 and taken a loan of Rs.40 to fund the balance.
My question is regarding the LTCG on the sale of plot. Assuming that taxable amount is Rs.40 (Rs.100-Rs.60; forgoing benefit of indexation here), can I claim exemption on entire Rs.40 (since flat cost is Rs.60) or can I claim exemption on only Rs.20 (my investment in the flat).
Would be grateful if any expert can reply. Many thanks!
