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shefali soni (Querist)
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18 April 2010 The Residential Flat stands in the name of mother. She has two sons. Due to family disputes they want to seperate. Mother sold her flat and out of the proceeds bought 3 flats in her name. Can she avail exemption from Long term Capital Gains on sale of residential property?
Please suggest if any other way except investment in govt bonds to save Long term Capital Gains

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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18 April 2010 Mother can claim reinvestment benefit only for one flat out of three bought by her.

Citation:- K.C Kaushik Vs. ITO (1990) 185 499 ITR (Bom).

However the Bangalore and Mumbai tribunals had taken a differnt view menaing thereby exemption u/s 54 had been allowed for reinvestment in more than one house.

Ratan Sharma

Ratan Sharma (Expert)
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19 April 2010 There is no bar on acquiring more than one residential house of of proceeds of one residential house. Deduction is available u/s. 54
D. Anand Basappa V. ITO 2004 91 ITD 53 ( Bang.), ITO V. P.C. Ramkrishna 2007 108 ITD 251 ( Chennai ) , Prem Prakash Bhutani V. CIT 2007 110 TTJ ( Delhi ) 440.