Capital Gain Tax & Exemption us 54

This query is : Resolved

Quick Summary

This discussion clarifies capital gains tax on jointly owned property where one spouse contributed the full purchase price. It explores whether the gain is split or fully taxable to the primary contributor, referencing investment percentages and potential clubbing provisions. Additionally, it addresses the lifetime limit for claiming Section 54 exemption on two properties, noting that while the exemption for two properties is a one-time benefit, the general exemption under Section 54 might be available annually, depending on the specifics of each case.

Krishna

Krishna (Querist)
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26 April 2025 In case the assessee has purchased a flat. Full consideration for flat has been paid by assessee only , however on sale deed assessee included his wife name also as purchaser no. 2 & the property is jointly held by them as per deed. Now if the assessee is selling a property then capital gain is chargeable equally in the hands of husband & wife OR full capital gain will taxable in the hands of husband only since the wife contribution is nil at the time of acquisition ?
2nd Query is
From FY 2019 20 incase the capital gain is upto 2 crore rupees then exemption us 54 can be claim for 2 properties. But this exemption only once in a lifetime. It means if I take this exemption now for 2 properties then suppose after 5 years can I take exemption us 54 for one property or no more exemption us 54 in lifetime ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 April 2025 1. As per rule liability over both.
2. Exemption over one property available for every year....

Krishna

Krishna (Querist)
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27 April 2025 Ok thanks you very much sir

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 April 2025 You are welcome.

Krishna

Krishna (Querist)
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27 April 2025 Sir, in first case clubbing provision us 64 may apply no ? Also I found some judgements where it mentions for capital gain tax purposes owner is determined on the basis of percentage of investment made by each spouse.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 April 2025 1. Yes.
2. Divergent views, specifically relevant to case to case basis.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 September 2025 Good luck.....

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