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Section 54 of income tax act

Roopesh Gangisetty (Article trainee) (176 Points)

11 September 2014

Dear All,

One of My Client purchases the property in 2006-07 and sold it in 2012-13. Which attracts a LTCG of Rs.32,00,000.

Within the period of one year he invested the same amount in another residential property. But the issue is, although he invested the entire amount in new property such property was registered with joint ownership(Assessee and other than family member).

Please suggest whethe Assessee can take full benifiet on transfer as per Sec 54

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4 Replies

Ankit (Student) (661 Points)
Replied 12 September 2014

he can take if the entire amount of new residential property is paid by him..

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CA. sanjeet Kumar Ojha (Chartered Accountant) (272 Points)
Replied 12 September 2014

Yes, he can take the exemption of full amount if the following condition are satisfied:-

1) He has invested full consideration

2) purchased a new property

Note:- it is irrelevant that property is in his name or in other's family member's name. there is no any condition regarding ownership in sec 54.

Delhi High Court has also decided in the case of CIT Vs kamal wahal (2013)351 ITR 4 (Delhi) , that assessee is entitled to claim exemption in respect of utilization of sale proceeds in the name of his wife.

Now, I hope, You are clear to your question....

take full exemption........

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