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query on capital gains - fixed asset

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This query is : Resolved

guptaone@yahoo.com (Querist)

08 March 2011
i am constructing a house with a construction cost of 80 lakhs! both site n approved municipal plan r on my name.
i hv another property on my wifes name for which i will get over 60lakhs as capital gain! can i use these capital gain proceeds for the house i am constructing on my name inorder to hv tax exemption? IF THIS IS POSSIBLE, IT WILL BE THE BEST OPTION FOR US! the property we r planning to dispose is from our(mine n my wifes) earnings abroad couple of years back!
i can also gift the semifinished house under construction to my wife but approved municipal plan on my name cannt be changed! similarly the property which we r planning to dispose too can be gifted to me by my wife though we may loose abt 3% towards gift registration!
advice is highly appreciated!
tks n regds,
Gupta.

U S Sharma

U S Sharma (Expert)

17 July 2011 without fear go for construction .......use the bank transaction of wife towards the payment of house property ( dont bring to your account but pay direct from that account) she will get sec 54 benefit .....

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