Regarding sale of property- capital gain

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A client's mother sold land and used the proceeds to buy a house for her son, which is registered in his name. The discussion explores whether the mother can claim a capital gains tax exemption under Section 54F. It highlights that while the son took a home loan, the mother's funds were transferred to his account to repay EMIs. Crucially, the investment needs to be clearly authenticated by the mother's payment proof to qualify for the exemption.

akshay maloo

akshay maloo (Querist)

20 March 2023 My clinet's mother sale her property in land and invest that amount to buy a house property for her son. The purchased residential house is in the name of her son. Can she claim capital gain investment benefit under section 54f

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

20 March 2023 The exemption u/s. 54F can be claimed, if the investment in HP property can be authenticated by payment proof paid by the lady.

akshay maloo

akshay maloo (Querist)

21 March 2023 The son has bought the property in the last financial year by taking a home loan.
The sale proceeds of mother have been transferred to Sons bank account through which he paid the home loan EMI's in one shot

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

21 March 2023 These transactions do not reflect the investment by mother to claim said exemption.

akshay maloo

akshay maloo (Querist)

21 March 2023 ok, Thank You So mUch Sir.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

21 March 2023 You are welcome.

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