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Capital Gain Tax

Tax queries 194 views 1 replies

Gagandeep

service

23 Points Posted on 12 December 2019

Dear All,

Kindly help me with following:

My mother in law is selling some property.

I have following queries regarding capital gain tax:

1. Will Caiptal gain tax be applicable, if she buys land/house in name of her daughter from the sale proceed.

2. If she buys in joint name of herself and daughter, what will be the tax implications.

3. She is already owning other house and land in her name.If she buys other land/house in her name from sale proceed, willl she get capital gain tax benefit or she will have to pay full tax

4. In how many properties she can invest from the sale proceed.

5. Can she buy property from sale proceed any where in India.

6. What else can be done to avoid paying capital gain tax.

Thanks and regards

Replies (1)

sanjith kotni

Articled assistant

663 Points Posted on 12 December 2019

If the property sold is residential house property then she can claim exemption of capital gains from income tax ,if she complies sec 54 .
sec 54 says if any individual invests the capital gain from transfer of residential house property and land appartuenent therto in any other residential property with in 2 years for acquisition and 3 years for construction,then entire capital gains shall be Exempted.
This section is amended recently and from FY2019-20, investment can be made in 2 Residential properties with in the above time lines.But this option is available only once for the assessee over his lifetime.so you can invest in upto residential houses .
With respect to name ,you can invest in either of your family names