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Capital gain

AMIT GUPTA (ARTICAL) (35 Points)

30 January 2020

Father sold a land and purchased a land in name of his two sons.. can he claims exemption under capital gain?? Or how to invest in name of sons to save tax

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3 Replies

Roshni (Studwnt) (1141 Points)
Replied 30 January 2020

Yes Exemption can be claimed

Kapadia Pravin (17249 Points)
Replied 30 January 2020

No deduction of capital gain is available to father. (Mere Sale of land is not covered under 54)

it's called deduction and not exemption under 54.

Option is to gift the land to your son's and then sale Of Land. Sale will be by your son's and they can purchase another land in their name.

Capital gain tax on land gifted will be in the hands of your son's equally.

jaya krishna (Chartered Accountant) (262 Points)
Replied 30 January 2020

Deduction allowed under section 54F if the net sale proceeds invested in purchase of another residential property subject to such conditions. Even residential property purchased in the name of sons also eligible for deduction based on case laws.

Deduction under 54EC also available.