A property is sold by "A" and there are long term capital gains. Can the capital gains be used to purchase property in the name of minor children of the same person and exemption calimed
Menu
Capital gains - minor
Replies (4)
new property can be purchase in the name of minor but you cannot claim exemption
there is a provision U/S 54 to purchase a new property within 2 years from the date of sale there is no such condition that new property must be in the name of owner of property i.e, it can be in the name of anyone....
Dear Anis,
Subject to other conditions U/s.54, there is no requirement that the asset shall be purchased in the name of the transferor. It not means either the new property must be purchased in the name of the transferor or in the name of others.
However, there is a decided case to support your present Situation which is decided as follows;
Assessee is entitled to exemption U/s.54 even if new house is acquired in spouse name, which was assessed in the hands of the assessee (V.Natarajan Vs ITR(Mad)).
Further it is to be noted that, income from such new property shall be assessable in your hands as per clubbing provisions of the income tax act.
Dear Anis,
In 4th para, The Word "Your" Shall be substituted with "Mr.A"
Recent Topics :
- Utilising Section 54(F) for capital gains reinvest
- GST ewaybill closure and Bill to ship to GST numbe
- TDS ON PARNTER INTEREST
- Share important chapters of ca inter costing
- Free CA Foundation Study Material - PYQs with Sugg
- INCOME TAX
- Moving from old to new tax regime after notice
- Need urgent help on notice
- ITR-3 - F&O Loss adjusted against business inc
- Error - Blank Rows in Schedule SI (ITR-2)
Related Topics :
CAclubindia
