Exemption incase of Sale of property

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This query is : Resolved

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A person sold their old property and bought a new one where their wife is the primary owner and they are the secondary owner. The TDS for the new property was paid using the wife's PAN, even though she wasn't an owner of the old property. The discussion clarifies whether the husband can claim capital gains exemption on the sale of the old property, provided certain conditions under Section 54 of the IT Act are met and his share of the payment for the new property is considered.

DIVYESH JAIN

DIVYESH JAIN (Querist)
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01 October 2021 Dear Sir,

A person has sold his old property which was in his name and against that he has purchased a new property where his wife is the first owner and he is the second owner of the new property.

In the old property which was sold his wife's name is not there as the owner and the entire tds was paid in his wife's PAN while purchasing the new property.

Can the person claim exemption on capital gain from sale of property when he has purchased new property while filing his return.

Please help me in this matter.

Regards,
Divyesh Jain

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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01 October 2021 The TDS should have been deducted/paid by both equally.
Take care about the payment, husband pays at least the amount equal to or more than the CG arrived from old property sell.

DIVYESH JAIN

DIVYESH JAIN (Querist)
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01 October 2021 The TDS was booked in wife's account and its reflecting in her 26AS. Payment to builder has been done equally both by husband and wife. Can the husband take the benefit of amount he has paid.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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01 October 2021 Yes, he can, subject to conditions as specified in section 54 of IT act; and upto the limit of share in the newly purchased property.

DIVYESH JAIN

DIVYESH JAIN (Querist)
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01 October 2021 Ok, Thanks for your reply Sir

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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01 October 2021 Most welcome.

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