Capital gains
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 July 2012
Mr.X,bought a property in name of his nephew,
would he be eligible for CG exemption?does nephew comes under the relation lenial descendant?if so how,plz explain.
*edited*
belated thanks mr.bafna
would he be eligible for CG exemption?does nephew comes under the relation lenial descendant?if so how,plz explain.
*edited*
belated thanks mr.bafna
22 July 2012
For getting exemption the property must be
purchased by the Individual in his name only. If he himself feels an unlucky fellow or otherwise, he can purchase the same in his spouse's name. By purchasing the property in nephew's name, he will loose the CG exemption.
.
Lineal Descendant in respect to an individual means those who are in a direct line under him. His son is Lineal Descendant of him as he is in direct line.
If we consider his nephew's relation it goes diagonally. He is not a relative as per definition given U/s 2(41) of the IT Act.
.
For more details you may connect-
https://www.lawyersclubindia.com/forum/List-of-Relitives-u-s-56-2-VII-of-Income-Tax-Act-19145.asp#.UAvOcGHaa5w
purchased by the Individual in his name only. If he himself feels an unlucky fellow or otherwise, he can purchase the same in his spouse's name. By purchasing the property in nephew's name, he will loose the CG exemption.
.
Lineal Descendant in respect to an individual means those who are in a direct line under him. His son is Lineal Descendant of him as he is in direct line.
If we consider his nephew's relation it goes diagonally. He is not a relative as per definition given U/s 2(41) of the IT Act.
.
For more details you may connect-
https://www.lawyersclubindia.com/forum/List-of-Relitives-u-s-56-2-VII-of-Income-Tax-Act-19145.asp#.UAvOcGHaa5w
Message likes :
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01 July 2013
The purchase is benami and hence no deduction to be allowed. The expert is correct and it is to be in the name of the individual person
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