LTCG tax relief under section 54

Save Share

This query is : Resolved

Sanjeev (Querist)
Follow

26 June 2023 Hello Sir,

1. I have sold house property inherited from my father for Rs75L in May 2023 and received long term capital gains of Rs 50L
2. Besides this, I am also planning to sell one more property for Rs65L which will give me Rs35L of long term capital gain.
This property was self acquired by me in 2003, I had fully invested in this property and there was no investment from wife; however, this property was registered in my name and my wife's name jointly
3. With the sale proceed from these 2 properties, I am planning to buy a NEW property that will cost around Rs 1Cr,

Kindly clarify,
A> Will Long Term Capital Gain be applicable for my wife also, even though there was NO investment from her side
B> In case, LTCG is applicable for my wife from 2nd property, will it be equal for both i.e Rs17.5L each. If yes, then total LTCG will be :
i> For me, LTCG will be Rs 67.5L (Rs50L from inherited prop + 17.5L from self acquired prop)
ii>And for my Wife it will be Rs17.5L
C> While buying new property do we need to mention exact % ownership in registry of property as per respective investment from both of us , i.e. , Rs 82.5 L (LTCG + extra amount) from my side and Rs17.5L (LTCG only) from wife side so that both can claim tax relief under section 54?

Regards,
Sanjeev

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

26 June 2023 1. No, when the total LTCG declared by you.
2. Claim can be as per investment made by each Co-owner. No need to specify percentage of ownership.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!