Usage of basic exemption u/s112 on jointly held property
This query is : Resolved
17 October 2014
A plot of land is jointly held by a husband and wife. In F.Y 2013-14 they sell this land(being a long term capital asset) for 12 lakhs , the indexed cost of acquisition of which comes to 8 lakhs. Both the couples in this case are not earning any income under any other heads. My question is whether the basic exemption limit of both the couples (i.e 2lakhs + 2lakhs=4lakhs)be added together and deducted from the long term capital gain under the benefit available u/s 112. Kindly give supporting s for your answer too.
17 October 2014
First of all divide the entire consideration received by co-owners in their proportion i.e., divide Rs. 12 Lakhs into 2 parts according to their agreed ratio. Then Start calculate the capital gain . You get 4 Lakhs exemption under income tax act.
Note: Divide the cost of acquisition in their proportion and calculate the indexed cost.
Note: Divide the cost of acquisition in their proportion and calculate the indexed cost.
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