Capital gain

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This query is : Resolved

RITESH RAJ PARIYANI (Querist)

11 February 2015 I HAVE PURCHASE A FLAT WHICH POSSESSION IS DUE ON 1ST APRIL 2015 AND I HAVE TAKEN HOUSING LOAN FOR THE SAME.

NOW MY MOTHER HAS A HOUSE WHICH SHE IS GOING TO SALE IN MONTH OF APRIL. THIS HOUSE WAS PURCHASE IN 1996.

MY QUESTION IS THAT THIS CONSIDERATION CAN BE USED BY ME IN MY FLAT LOAN PAYMENT.AND WILL MY MOTHER WILL ELIGIBLE FOR DEDUCTION UNDER SECTION 54.

Amol S Joglekar

Amol S Joglekar (Expert)

11 February 2015 is your mother's name included while purchasing this flat scheduled to be possessed by you in April 2015?

The mere repayment of any loan does NOT give any entitlement for exemption/deduction.

RITESH RAJ PARIYANI

RITESH RAJ PARIYANI (Querist)

11 February 2015 MY MOTHER NAME IS MENTIONED IN LOAN AS SECOND APPLICANT.

Amol S Joglekar

Amol S Joglekar (Expert)

11 February 2015 Loan repayment does NOT qualify for any exemption from capital gain.

RITESH RAJ PARIYANI

RITESH RAJ PARIYANI (Querist)

12 February 2015 Thank you sir...

Further my father has invested money in flat in june 2012 for which possession is not received.

May we use this sale consideration in that and will my mother get 54 deduction

Amol S Joglekar

Amol S Joglekar (Expert)

12 February 2015 Please read 54 carefully. : It is 1 year before or 2 years after....for PURCHASE
and 3 years after...for construction.

Income tax Act being person specific, you need to invest the money in the name of SAME person for whom you are opting for 54 exemption/deduction etc.

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RITESH RAJ PARIYANI

RITESH RAJ PARIYANI (Querist)

12 February 2015 thanks sir...

so it will be better for me to invest in 54EC.

Amol S Joglekar

Amol S Joglekar (Expert)

12 February 2015 yes, definitely. 54EC would be a better option.

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