Capital gain on sale of house property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 June 2015 If husband and wife owning two separate flats at separate location and sales their respective flats at different time and buys one single flat out of the proceeds then pls clarify

1. To claim capital gain exemption by each of them whether new flat to be owned jointly by them or single name ownership is fine ?

2. Whether entire sale proceeds to be invested or only capital gain arising to be invested in the new property buy out?

3. Whether cash withdrawn from the sale proceeds to paid to builder can be established as payment for purchase of house property?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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16 June 2015 1. New flat should be owned jointly and husband and wife should invest their capital gains separately in the new flat.

2. Exemption will be u/s 54 so only capital gain is required to be invested.

3. Yes.