Long term capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2013 I want to sell my residential house. The long term capital gain arising on sale can be exempted by purchasing or constructing a new house within 2 or 3 years. But I want to purchase the new house in the name of my independent son, so that my Capital gain will also be exempted and my son can get the benefits under Head - Income from House & Property.Is there any way out?

Please help.

CA. PIYUSH GOEL

CA. PIYUSH GOEL (Expert)
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11 April 2013 dear.. legally benefit is available only if seller is acquired asset in his name..

in your case for the purpose of capital gain exemption you should acquire asset in your name and after claiming exemption u/s 54 gift your house property to your independent son..
there will be the following benefits..

1. your son will be the owner of house property and you will not be treated as deemed owner as per sec. 27

2. gift is not taxable under head capital gain..therefore no income in hands of son

3. gift is not regarded as transfer as per sec. 47 therefore clause that house property purchased for exemption will not be transferred before 3 years of purchase will not be violated..

Querist : Anonymous

Querist : Anonymous (Querist)

12 April 2013 Thank you Piyush Ji.

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