Long Term Capital Gain

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SACHIN (Querist)
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30 May 2009 I have one Individual File.
In file to see that He purchase a House in F.Y. 92-93 cost of acquisition :- Rs. 126000 & Sold in F.y. 2008-09 Rs. :- 384000. I say to purchase a house within 3 years of from selling house date in u/s 54. But he purchase his son's name house.
so can he exemption for Long Term Capital Gain tax ?

Chandrashekhar B Dushi

Chandrashekhar B Dushi (Expert)
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30 May 2009 To qulify for exemption u/s 54, house should be purchased in the name of same person who was owner of sold house. Assuming that the sold house was owned only by father, buying house in the name will not save Capital Gain Tax.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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30 May 2009 he will not qualify for exemption U/S 54.

agreed with the expert

CMA KNVV Sri Vidya - Sri Kanth

CMA KNVV Sri Vidya - Sri Kanth (Expert)
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30 May 2009 Agree with experts

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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30 May 2009 But there are few cases which is against the opinion expressed above.
1) ITO Vs S. Varadarajan (1989) 33 TTJ 466 (Mad). Held that exemption u/s 54 should not be denied on technical ground that the documents was not in the name of the assessee.
2)V. Natarajan 287 ITR 271 (Mad). Held that assessee is entitled to exemption u/s 54 even if the new house property acquired is in the name of spouse, which was assessed in the hands of the assessee.

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CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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30 May 2009 The deduction can be claimed provided the money has been paid from the amount of capital gains.
Registration in the name of the son is only a technical non-compliance.

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