15 February 2020
Hai dear Ones Good evening. My cousin is going to sell his property(Land) which approx value of 45 lakhs which bought at 10 years ago for 5 lakhs.He will utilize the money for constructing of a building which land is on his wife name. His son is having a building which bought with 18lakhs loan and 12 lakhs his own fund. Can the father said that profit of the sold property is cleared his son Loan for tax deduction. Pls guide me n suggest me how much of capital gain tax(maximum) may be impose with the above Values. Thanking You All.
15 February 2020
He can claim deduction u/s 54F for purchasing or construction of the building in his wife name. Usage of the funds is important in section 54F towards new house. Son has used his own funds & taken loan in his own name so father cannot claim sec 54F deduction for the building bought already by the son. LTCG willl be chargeable @ 20% upon the gain after claiming section 54F exemption. Deduction u.s 54F will be given proportion of the investment to sales consideration.
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