Buying right in ancestral property from siblings

185 views 1 replies

assessee is planning to buy right in ancestral property after death of parents. His other siblings will be relinquishing their right for consideration. Assessee will sell his other owned properties to raise amount of consideration to be paid to siblings. he will have long term capital gain on sale of these owened properties. 

Will this purchase of share in ancestral property rights by other siblings which will give in single title to ancestral property qualify as investement in residential house u/s 54 of income tax act as exemption from capital gain on sale of his owned properties.

Pl guide. 

Awaiting reply ASAP.

Replies (1)

Yes, When the co-owner release their rights in favour of assessee, its considered as deemed purchase, and over such purchase exemption u/s. 54 can be availed. CIT vs. T.N. Arvinda Reddy (1979) 120 ITR 46/2 taxman 541 (SC)

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
25 June 2026
AUDIT MANAGER

JDAS & ASSOCIATES

New Delhi

CA

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
19 June 2026
Accounts Executive

Getfive Advisors Pvt. Ltd.

Ahmedabad

CA Inter

View Details
Company
ARTICLESHIP 07 July 2026
Articleship

Jawahar and Associates Chartered Accountants

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details