House buiding to save capital gain tax

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Girish Limbachiya (Querist)
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20 May 2026 Dear Sir,

This year we are going to receive long-term capital gain from our overseas investment in shares.
Also, this year I am building a new house, but the land is in the name of a company in which I am a major shareholder. In past, due to the land sealing act, we distributed land in different Private Limited Companies in 1975. The MOA of the company is allow to use of this land to build a house for residential purposes.

My questions are :
1. Shall I get a benefit to save capital gain tax u/s 54. ?
2. If not, can I do a joint agreement with the company and get a benefit to save Capital Gain Tax ?

Please advise.

Best regards
Girish

,

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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20 May 2026 In brief, you likely cannot claim the Section 54 exemption for a house built on land owned by a company, regardless of your shareholding. The law requires that you personally own the new residential property to qualify for the tax benefit, and a joint agreement with a company typically does not satisfy this ownership requirement. You should consult a qualified Chartered Accountant to review your specific documentation and explore if any other restructuring options are legally viable for your situation.

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