Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2015 I have sold one bunglow in this year in legal documents it was in name of my father as well as me. and also i have bought another flat in same year. Is there any capital gain implication for the same??? Note that jantri value of fat purchased is less than jantri value of bunglow sold.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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21 August 2015 Since the bungalow is in the joint name of you and your father. Capital gain will accrue jointly to you and father. Capital gain will be calculated in the hands of you and your father separately by taking into account half share of sale proceeds and half share of indexed cost of acquisition. Please also mind the provisions of section 50C in this regard. Capital gain exemption will be available for both of you u/s 54 in equal proportion out of investment made in new flat. But for that ensure that new flat is purchased in the joint names in the same order in which they appear in old bungalow. Sale deed of old bungalow should also be executed in joint names of your father and you as joint owners.

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