Capital gain on sale of hp

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

08 March 2013 Mr.X Purchased one House in year 1998 which remained vacant till date of Sale 2013.
Now he wants to sells this Property and buy new one in name of his son and Wife.

What will be tax implication of this transaction?
Can he purchase new property in name of his son and Wife?
Can his son pay for new house from his account?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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09 March 2013 the sale of this property shall be chargeable under long term capital gains.

the long term capital gains may become exempt from taxation provided certain conditions are fulfilled which have been detailed in section 54 of the income-tax act.

For eg: one condition is that the income from residential property should have been offered to tax under the head "income from house property" (I am not sure whether you are complying with this or not)

You cant claim exemption if the new property is being bought in name of any person other than the assessee.

Querist : Anonymous

Querist : Anonymous (Querist)

09 March 2013 Sir Mr.X is Selling Old HP and Buying new 2 HP for compliance of Sec 54 but payment is done by his son for HP 1 and HP 2 is from Joint Account with his wife.

Can new HP bought by payment from his sons account will be eligible for claim u/s 54 or else Mr.X have to open Joint Account.

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