Capital gains on flat sale

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Shifa Kazi (Querist)

04 January 2014 My husband and myself were joint owners (flat's first name was mine) of a flat purchased in Feb' 06 for Rs. 8.40 lacs. We sold this flat in Nov' 13 for Rs. 28 lacs. We have purchased another flat jointly in Dec' 12 (my husband is its first owner) for Rs. 28.22 lacs including stamp duty, registration and taxes. What are the capital gains for me in FY 13-14? Can I claim capital gains exemption even though the new flat purchased in Dec’ 12 does not have my name as its first owner? I do not own any other house in my name. My husband also owns two other houses in his name.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

05 January 2014 The capital gains in this case will be -

2800000-(840000/519) x939= Rs. 480232.
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The order of names in the documents doesn't matter. The only thing to be kept in mind is percentage of ownership or share in he property.
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As such, you can also claim the tax benefit in respect of the new flat purchased .
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Further, holding of none, one or more houses is also not a condition, so as to give it any thought, as you both are going to claim exemption U/s 54. Such restrictions applies when the asset sold is other than a residential house.
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Shifa Kazi

Shifa Kazi (Querist)

05 January 2014 Thanks. The cap gain shud be 12.80 lacs as per your formula. However, as described, there are no capital gains neither for my husband nor for me in FY 13-14. Do I have to declare this sale transaction while filing my IT returns for FY 13-14. Does my husband have to declare it? What is the procedure?

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