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Capital gain on residential & commercial property

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Krishna

Self

32 Points Joined October 2011

I have multiple queries

1-I have multiple flats is my name.
I want to Gift one of my flat to my wife & sell in few months.
If she sells that, can she can invest those proceeds in other resdential property to avail capital gains tax exemption.
I hope no clubbing provisions exist here

2-If i sell flat myself can i invest in capital gains bond to avail exemption as i already hold multiple properties

3-If i sell a commercial property can i invest in capital gains bond to avail exemption. I already have 2 residential property so i cannot invest in new residential property to avail exemption

Please suggest if any other better options.

Replies (1)

CA Ketan Waghela

Partner at Elite Educare

356 Points Joined December 2011

1. The clubbing provision will be applicable for the first instance. But you can avail exemption u/s 54EC by investing in the bonds (NHAI & REC) redeemable after 3 years. But criteria for exemption u/s 54EC will be applicable. But the investment should not exceed Rs.50 lacs.

2. Answer for the 2^nd case will be the same as 1.

3. Yes, you can avail exemption from capital gain by purchasing Bonds, but you can not purchase another residential property for exemption.