Hi,
Say a person x sells a property and from the amount received invests in NHAI (National Highway Authority of India) or REC bonds to save capital gains tax.
Can x be the second applicant in the tax saving bond ? In this case, the first applicant receives the interest and maturity amount of the bond.
Can x still claim the Capital gains excemption under section 54EC because he paid for the bonds (asuming ofcourse that the first applicant does not claim any deduction) ?
Thanks.
Hi,
Tax liability burden in case of joint holder is on first holder only
Hi,
Thanks for the prompt response, Tax liability meaning tax on interest earned in the bonds ?
Can the second applicant (joint holder) claim excemption from capital gains as the property sold belonged to the second applicant and not to the first, and the amount invested can be traced back to the second applicant only who received it from the property sale.
Thanks.
As far as capital gain is concern if you bifurcate it that this money and exemption is of second applicant and if you justify it than you can do it.
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