Sec 54

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Komal (Querist)
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16 February 2011 A WIFE WANTS TO INVEST HER LONG TERM CAPITAL GAIN ON SALE OF CAPITAL ASSET IN HER HUSBANDS RESIDENTIAL HOUSE WHICH IS UNDER CONSTRUCTION. CAN SHE TAKE BENEFIT U/S 54?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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16 February 2011 The house should be atleast in joint name to claim exemption.

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Anupkumar Vaishnav

Anupkumar Vaishnav (Expert)
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16 February 2011 Wife can get the exemption provided property is purchased in joint name. You may refer judgments in the case of ITO v Shekhar Sood (2005) 93 TTJ 909, JCIT v Smt Armeda K Bhaya (2006) 99 TTJ (mumbai) 358 and other judgments including that of SC refred to therein. The entire thrust is on the section 45 of Trnafer of property Act which provides that when property is taken in joint name out of common funds then the interest of the each owner will be in prop to the amount invested. If wife invests 100% then she can claim 54 deduction 100%

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