Capital gain

This query is : Resolved

amit shah (Querist)

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..

Nikhil Kaushik

Nikhil Kaushik (Expert)

01 March 2013 Buy the two properties in individual names and let x and y claim exemption under 54 on the separate investments made respectively

amit shah

amit shah (Querist)

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.?

Rupesh Jain

Rupesh Jain (Expert)

20 July 2013 NO YOU CANNOT BUT TWO HOUSE
YOU HAVE TO BUY ONLY ONE HOUSE IN ONE EXISTING OWNER NAME
OTHERWISE NO DEDUCTION ALLOWED

Nikhil Kaushik

Nikhil Kaushik (Expert)

20 July 2013 Dear Rupesh,

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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