Capital Gains

Tax queries 647 views 2 replies

Gud Mrng...Frnds & Experts...

Provide suggestion for foll query..

My Client have sold Let Out Property this year..nd he has purchased another residential house out of sale consideration as per condition given u/s 54 on his own name in order to claim exemption....actually he dint wnt to buy property on his own name but on his major son's name...since we can not transfer property within 3 years..nw my question is can we gift this property within a period of 3 years..is dis allowed..? Is condition of 3 years applicable for Gift also??

Pls help me...

Replies (2)

 

Give advice to buy property is his name and after that make a gift deed and gift it to sons.

I dont agree with Pankaj Arora

To claim exemption u/s 54, purchase of residential house coupled with possession is a precondition. If you made it as gift it amounts to transfer.

Refer Balraj vs CIT (2002) 254ITR22(Del)


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