Capital gain on property

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5 Points Posted on 09 June 2020

Respected Seniors,

I have purchased a plot of land on 10th July 2018 in joint name with my wife for Rs 12lacs , developed it and constructed shed on it for which we made an expenses of 14lacs. Now iam having a ready buyer for 35lacs who is ready to complete the deal within 15th July. My queries are:

I will be entitled for long term capital gain or not.

We both have contributed equally for all cost so what will be individual liability of tax.

Can I purchase 54ec bond to save my capital gain tax.

Awaiting an early solution to my query and thanks in advance.

Yours faithfully,

Yogesh Sheth

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On 09 June 2020 at 11:57 Report
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Quick Summary
This discussion addresses capital gains tax on a plot of land purchased jointly with a spouse. The owner seeks clarification on long-term capital gains eligibility, individual tax liabilities based on contributions, and the possibility of using 54EC bonds for tax exemption. Advice suggests eligibility for exemptions and that capital gains will be calculated and taxed separately for each co-owner based on their ownership proportion.

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12244 Points Posted on 09 June 2020
Yes you are eligible for deduction under 54f or 54ec as the case may be
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On 09 June 2020 at 14:28
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Profession Business
28246 Points Posted on 09 June 2020
Yogesh




in whose name the plot of land belongs?
even if your wife incurs expenses it's a mutual understanding.
will u be purchasing joint property again or investing in securities?
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On 09 June 2020 at 16:10
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AUDIT ASSISTANT
179 Points Posted on 09 June 2020
Taxability for capital gain will arise in the ratio of ownership and ownership will be determined in the proportion of contribution to the cost of property by each of you.

Capital gain will be calaculate separtely for each co owner.

further it is not necessary to get exemption investment should be made jointly.
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On 09 June 2020 at 21:36

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