Capital gain

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Akanksha Airan (Querist)
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07 August 2013 A has sold his plot for Rs.50 lacs. Long term capital gain is 25 lacs. Now A wants to construt a house on the plot of B (Brother of A).
Query : 1. can A get exemption u/s 54 if he invests the required amount in the construction of the house?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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08 August 2013 The house property must be registered in the name of the assessee who sold the asset. Accordingly the house property needs to be registered in the name of A if he wants to avail exemption u/s 54.

Akanksha Airan

Akanksha Airan (Querist)
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08 August 2013 plot is registered in the name of B. He is brother of A. Is it required to get registered the house only in the name of B to get the benifit of sec. 54?
Is there is any other remedy to avoid the registration exp. ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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11 August 2013 You are my brother. I am having a plot. You have constructed a House on my plot.
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I can say that the house is mine as the land is mine. I can demolish the structure also.
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How you will prove that you have constructed the house ?
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The same thing is possible between the two brothers also.
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It is better to incur the registration expenses. Tell your brother to gift the plot to you. What is his reaction ? If he does, you construct the property and stay with him.

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