Capital gain exemption under section 54 - urgent

Tax queries 825 views 5 replies

SRINIVASULU SURE

CA in Practise

80 Points Joined March 2009

Dear All

Assessee has sold residential house property during the current financial year. Assessee got long term capital gain. For claiming exemption under section 54, the assessee has acquired new residential house property. However, the said new property in his name and son-in-law in the ratio of 50:50.

Can assessee is eligible benefit of exemption under section 54 to the extent of his proportion i..e, 50%.

Please give any one reply as soon as possible.

Replies (5)

Hitesh Khanna

Accounting & Finance Taxation Company

839 Points Joined September 2010

Requirement of law is that the assessee should purchase a residential house within the specified period.

exemption will be available where the funds are invested by the assessee towards purchase of new residential property to the extent of capital gain.

Sec 54 is silent about registration.

manoj

student

5205 Points Joined February 2009

he can claim exemption upto the amount of investment

SAYED MUJEEB

ACCOUNTANT

101 Points Joined August 2011

Originally posted by : SRINIVASULU SURE

ther is nothing directly mentioned in the act about the qury you rased.how ever there is case law for section 45B as follows.

exemption u/s 45B cannot be denied solely on the ground that the new agricultural land purchased is not wholly owned by the assessee but also by the assesse's son as a co-owner as per sale deed. [ CIT Vs Gurnam singh (2012) 327 ITR 278 (P&H)]

So as per the above pronouncement i think that exemption will be allowed.