Section 54F: Inherited Property & Capital Gains Tax Explained

This query is : Resolved

Quick Summary

This discussion explores whether Section 54F can be used to claim capital gains tax exemption on the sale of inherited property. While direct use might not be possible, relinquishing rights in the inherited property to a father or sibling could enable claiming the exemption. It's also clarified that to claim 54F, you must be an owner or co-owner of the new property, even if purchased with your wife.

Pranav

Pranav (Querist)

12 August 2024 Respected Everyone,

My mother had a residential house, and she passed away in 2014. The house got transferred to 3 people (my father, me and my brother). I dont pay any electricity bills here. I purchased an apartment in 2022, and I bought it with my father, me and my wife. Here the electricity bill is on my name and I pay the bills. Now I want to sell shares and buy another small apartment. Can I claim LTCG using section 54F?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

13 August 2024 As such no. But you can relinquish you rights in the inherited property to either of your father or brother or both. Then you can get benefit of sec. 54F exemption.

Message likes : 3 times

Pranav

Pranav (Querist)

13 August 2024 Thank you sir.
Is it possible to buy a new property on my wife's name and I invest the capital gains and can I still claim 54F? My wife owns one house which is joint property with me?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

13 August 2024 If you want to claim the exemption, you should be owner or co-owner of the new property.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

26 August 2024 Good Luck.

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