Ltcg on sale of residential house

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CA AJAY KUMAR AGRAWAL (Querist)
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06 September 2013 One of my client has sold 10 year old residential house. There is LTCG also, by applying Cost Inflation Index. He has taken 50% amount in his account & rest in his wife's bank account. Question is:-
(1) Is there any problem in taking amount like this?
(2) What formality he has to fulfill for coming 3 years to claim exemption u/s 54(F) as he wants to invest the same in another residential house. Please advice.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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06 September 2013 for claiming deduction under sec 54F

You have to construct a new residential house within 3 years from the date of transfer, or

You should have purchased a residential house one year before, or

You have to purchase a residential house two years after the date of transfer.

Conditions to Claim Deduction

You should not own more than one residential house, other than new asset, on the date of transfer of original asset.

You shall not purchase within a year or construct within three years any residential house, other than new asset after the date of transfer of the asset.

The income from such residential house is chargeable under the head "Income from House Property", other than the one owned at the time of transfer.

CA AJAY KUMAR AGRAWAL

CA AJAY KUMAR AGRAWAL (Querist)
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06 September 2013 Thanx..but the practical aspects are still unanswered.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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06 September 2013 U/S 54 the amount of the capital gain if not invested for purchasing or constructing any HP then the amount needs to be transfer under Capital Gain deposit scheme to avoid CG tax before the due date of filing the return U/S 139 {1}...

CA AJAY KUMAR AGRAWAL

CA AJAY KUMAR AGRAWAL (Querist)
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07 September 2013 I want to know:-
1. Whether payment can be received 50% in husband & rest in wife's Bank account, without any problem?
2. Whether the said amount is to be declared/shown in any return for 3 years/upto the date of purchase of new house?

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