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Exemption u/s 54

Ashmal (sies) (54 Points)

26 July 2016

A single house property is in the name of 6 individuals and they sold it , the consideration received was equally distributed

My question is , to claim exemption u/s 54 is it required for each person to buy seperate property or if they buy a single property with the name of 6 individuals can the exemption be claimed for each 1 of them please suggest

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7 Replies

CA. Sunil Gokhale (Teacher) (1484 Points)
Replied 26 July 2016

Had each contributed while buying the property?

Ashmal (sies) (54 Points)
Replied 26 July 2016

No the property was inherited

CA. Sunil Gokhale (Teacher) (1484 Points)
Replied 26 July 2016

They are co-owners. Gain should be computed for the property on the whole. Each owner to show his share of gain in his ITR and can do his own tax planning, like 54 or 54EC.

Ashmal (sies) (54 Points)
Replied 26 July 2016

Thank you for your reply sir. Can the exemption u/s 54 be claimed if they buy a single property in the name of all from the total gain

CA. Sunil Gokhale (Teacher) (1484 Points)
Replied 26 July 2016

Yes. Each person should contribute at least the amount of his gain to get full exemption and ideally all should contribute equally to maintain the ratio.

CA. ANKUR JAIN (CA.....) (2800 Points)
Replied 26 July 2016

Hi,

They can take a single property with all names, But as said by Sunil Ji, they have to contribute the amount out of the share of sale consideration received in their individual hands.