Section 54 deduction
This query is : Resolved
06 July 2017
Hi..
Query: A residential house property (LTCA) is sold by an assessee and the proceed is used to invest in new residential house property, however, the new property is taken in his son and wife's name (both son & wife are joint owners), can the assessee claim the deduction u/s. 54 for the amount invested in the new residential house property..
Query: A residential house property (LTCA) is sold by an assessee and the proceed is used to invest in new residential house property, however, the new property is taken in his son and wife's name (both son & wife are joint owners), can the assessee claim the deduction u/s. 54 for the amount invested in the new residential house property..
06 July 2017
is assesse's name there in the new asset?
06 July 2017
Generally assesee will not get section 54 benefit. But Karnataka high court decided otherwise in Mrs. Jenifer Bhide's case. (203 Taxman 208).
06 July 2017
similar judgements are passed by Delhi, Mumbai and Chennai HC as well
06 July 2017
..Only son and wife of assessee are named in the agreement...
06 July 2017
He will not get the exemption u/s 54.
If the stake is high, then you may elect to take a chance of the case law mentioned above.
If the stake is high, then you may elect to take a chance of the case law mentioned above.
07 July 2017
Thanks..but just taking our discussion forward..
1. What if the assessee gifts the residential property to his son (son is major) and his son sells the property and claims deduction u/s.54.
2. And how the gains will be taxed in the hands of son.. as Short Term Gain or Long Term Gain.. as he himself is not holding the asset for 3 years or more..
1. What if the assessee gifts the residential property to his son (son is major) and his son sells the property and claims deduction u/s.54.
2. And how the gains will be taxed in the hands of son.. as Short Term Gain or Long Term Gain.. as he himself is not holding the asset for 3 years or more..
07 July 2017
in the case of gift, the period of holding shall include the period of the donor as well
07 July 2017
So it will be Long Term Capital Gain.. in the hands of son and he will be eligible to claim deduction u/s 54....
Thanks a lot..
Thanks a lot..
07 July 2017
yes, definitely.....when son sells the gifted property....the capital gain shall be long term
07 July 2017
The Gift received by the son wont be taxed in the hands of son as the gift received is from relative(father)..
07 July 2017
yes, absolutely right.....the gift is non taxable...
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Flat purchase in name of myself,my wife and son
- Tax on Goodwill on LLP
- Capital Gain Tax & Exemption us 54
- Registration of Articleship
- Procedure to surrender export incentive
- Reverse charge on commercial property
- Slight spelling change in PAN Surname
- Audit report for a private limted company ( small company) FY 2024-25
- Old car transaction
- Capital gains -1
- INCOME TAX SLAB RATE AND 87A REBATE
- Trial balance matching
- Drafting Grounds of Appeal under Service Tax
- TDS on Crypto section 194S
- GST Practitioner Details
- MSME Reporting in 3CB-CD
- SECTION 50AA SHORT TERM CAPITAL GAIN IN CASE OF MLD
- GSTR 3B and GST Challan payment
- How to surrender Duty Drawback
- ITC Reversal & re-claim statement [FY 2023-24]
Trending Online Classes
-
GST LIVE Certification Course - 42nd Weekend Batch(With Govt Certificate)
Industry Expert17 May 2025
CAclubindia
