Capital gain context

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This discussion explores whether capital gains tax is applicable when a house registered in one's sole name is sold, and a portion of the proceeds is used to purchase another property registered solely in the spouse's name. While case law might favour the assessee, it's generally advised to register the new property in joint names to potentially claim exemptions under Section 54 of the IT Act.

amit

amit (Querist)

03 August 2023 Hi All
If i sell a house registered in my sole name and then with the part of the money i buy and register another property in the sole name of my wife, will i be liable for capital gain on that amount. i sell a property for INR 65Lacs which was registered in my sole name. And then out of 65Lacs if i buy another property of 30 Lacs in the sole name of my wife, will i have to pay capital gain tax on the 30 Lacs?

Kindly respond ASAP and the solution/advise.

Regards AKS

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

03 August 2023 There are case laws which favors assessee in similar situations, but better to avoid it and purchase the new house in joint name to avail exemption u/s. 54 IT act.

amit

amit (Querist)

03 August 2023 Thanks a ton Dhirajlal Sir :)

Message likes : 1 times

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

03 August 2023 You are welcome.

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