01 March 2013
We had sold one House Property at 33.50 lacs which was jointly owned by Mrs. X (83 yeas), first named and Mr. Y (54 years), second name. Then we made investment in two house properties - One residential flat and another Tenement at two different places in the same town. Flat for 12.50 lacs & Tenement is under construction which is supposed to be completed next year at total cost of 23 lacs. My question is whether i can claim deduction u/s 54 or else of both the houses or not? or can i claim deduction in two separate name? or any other legal manner.? Please anyone should reply to my query soon. Thank you..
01 March 2013
Thnaks for the quick reply Mr. Nikhil. But as far as i know, deduction is available against the property. We have to utilise the sale consideration in purchasing a new House property, in whomsoever's name we desire. We may buy property in any name but the question is whether we can buy 2 HP on sale of 1 HP u/s 54.?
The section applies to an assessee. If there are two assessees, then the respective share in the sale proceeds shall be taxable in their respective tax returns.
Both of them shall always be at liberty to invest in separate properties to claim exemption.
Amit I believe, my earlier answer should have satisfied your queries.
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