(1)If the existing house is purchased by taking loan from a PSU bank thus claiming IT exemption for the "Yearly Interest amount" in full and for the "Principal amount" under Sec 80C, can I still sell this house after completion of 3 years and elligible to claim exemption under sec 54 as per the existing rules or do I have to hold this house for a longer period than 3 years? (2) Suppose LTCG is 20 lakhs(out of net selling cost of 35 lakhs)and the cost of the new house is 25 lakhs. Does it mean that the complete LTCG of 20 lakhs has been invested? (3) If the coast of the new house is 18 lakhs (Rs. 2lakhs less than LTCG).In that case Rs 2 lakhs requires to be continued to be invested in bonds like REC etc. for 3 years to avoid income tax?
