capital gain tax exemption

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This query is : Resolved

pavan kumar (Querist)

12 June 2009 me and my brother had got a capital gain deposit of Rs. 5,00,000/- each on selling our ancestral property. and we both deposited such amount in capital gain deposit scheme with Andra bank.now we are planning to construct a house jointly for our residential purpose as we have no house, using the both of our capital gains(5L + 5L). the site now we are going to construct the house jointly,is in the name of our two brothers. ours is a undivided family. can we both jointly construct the house for our residence purpose using both of our capital gains. please any one let me know and help me in this regard.

M Prabhakar Menon

M Prabhakar Menon (Expert)

14 June 2009 Assuming both of you are assessed to tax seperately and there is no HUF assessee then for IT purpose it is better to keep your seperate records clearly to satisfy the AO regarding the amount spent by each person to the total cost of construction of the property.Please note that your records should stand scrutiny.

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