Is ownership of house property necessary to claim exemption u/s 54EC?

This query is : Resolved

Abhinav (Querist)
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04 June 2016 I'm one of 4 daughters of my father, who died without any will. As per the laws of AWAS VIKAS(local development authority), the property can be transferred only to one of the daughter. So we all signed an agreement among ourselves, transferring the property(from the name of my father) to one of my sister's name. We mentioned in the agreement that she shall be selling the house property and divide the proceeds(sale consideration) among others equally (which she did). To avoid tax liability, I bought NHIA Bonds(u/s 54EC). To file IT Return(FORM2), I'm required to mention the 'dt. of acquisition of property', but my name doesn't appear on any legal document(Q.2- I didn't acquire any property?). Q.1- Am I not eligible for exemption and the proceeds received from sister will be treated as gift?

Prof. Bajaj

Prof. Bajaj (Expert)
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04 June 2016 Date of Acquisition by sister can be treated as your date of acquisition. In legal terms , this will be treated like a "Power Of Attorney" case wherein all 4 have given POA to one person.

All transaction done by that 1 person will be treated as done by the 4 people.

You're eligible for tax exemption.

CA Pracheta Shirish Deshmukh

CA Pracheta Shirish Deshmukh (Expert)
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04 June 2016 You must be appointed as administrator by competent court after observance of certain legal formalities. Next Heirship Application is compulsory along with Sworn Affidavit. After that, you will get the Heirship Certificate. You should pay the stamp duty as per Ready Recknor Rate. This date on which the formalities are completed, will be the date of acquisition.

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