Long Term Capital Gain
This query is : Resolved
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 ?
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 ?
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.
30 May 2009
he will not qualify for exemption U/S 54.
agreed with the expert
agreed with the expert
30 May 2009
Agree with experts
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.
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
(Expert)
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.
Registration in the name of the son is only a technical non-compliance.
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