Capital gains exemption if investment made in joint property

201 views 2 replies

Sandeep M

1 Points Joined July 2017

First of all hello to all.

I am planning to sell my house property which is in my sole name. It's was bought almost 7 years back so long term capital gain tax is applicable.

My 1st query as follows...

Is it compulsory that the property has to be in my sole name only to get benefits of capital gains tax exemption?

Now coming to my 2nd query...

I would like to know if I can invest part of the gain amount in joint property with my elder brother as well as sister-in-law and claim exemption to that extent? There will be some loan taken too by my brother & sister in law jointly and I am worried of sanctioning of loan proposal also.

Rest of capital gain amount I will invest in capital gain bonds for 3 years.

Is it really possible in law?

My brother & sister-in-law should not face any problems in loan approval too.

Please guide me.

Thanks in anticipation

Replies (2)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210838 Points Joined July 2016

Is it compulsory that the property has to be in my sole name only to get benefits of capital gains tax exemption?

Not at all.........

I would like to know if I can invest part of the gain amount in joint property with my elder brother as well as sister-in-law and claim exemption to that extent?............
Rest of capital gain amount I will invest in capital gain bonds for 3 years. Is it really possible in law?

Quite possible........... Exemption under section 54 & section 54EC....... can be availed simultaneously.

rama krishnan

12244 Points Joined May 2017

I disagree with dhirajlal sir's view. as per act, the new asset should be purchased in the name of ASSESSEE. there are several case laws where 54 & 54 F deductions have been allowed when the new asset was purchased in the of spouse. only criteria is that the amount should have been paid from assessee's account. but in the case of brother and sister in law, my opinion is that it'll not be allowed