clarification w.r.t section 54

strict language of the section says sse has to invest money in to purchase or cont=struction of house property but the section never says that he has to legally own it. but this interpretation will give absurd results and will also defeat the prupose of this section because proving that money was used for purpose of construciton of house or purchase of it is very difficult unless it has supporting documents like builders certificate that so much money is reccived from such person for construction but even after that it is debatable tht is ist nessaary to onw that property of just invest in it.or there is some purchase deed tshowing payments given via banks. this wil give rise to complications it is better to maker mother co onwer of the propery when she is ready to give the money for purpose of construction why not make the co owner of house, bothe viwes can be taken that leegal onwership can be taken and even not be taken but making her legal onwer is safer , son will be however be taxed  for his onw share and will be eligible for 54 only for her own share only , becoz each share in the property is known they will be taxed individually in each diffrent cases , language is not clear for mother getting exemption but according to me it is difficult ot make agree the AO to give mothers exemption , even while intoducing this section the purpose of govt was to encourage the construcion of houses and not that people must onw them legally, convincing AO is very difficlt task i will go in detail and search for this and let you know in a day or two

Yes youngest son and mother can invest in new house to get exemption u/s 54 . Ownership is not an issue .

;)

Thanks a lot Nimit Mehta and Paras... 

Have a nice day

1) Younger is eligible for exemption u/s 54. to the portion of amount of capital gains used for buy/construct new house.

2) Income of mother is also taxable.

3) under section 54, it is said the assessee has to buy new house (only for residential purposes) and it is no where stated that the assessee should get register.

        So, mother will also get the benefit u/s 54.

1). Younger son is eligible to get exemption u/s 54. He invests the entire Capital Gains in the Purchase or Construction of Residential house.

2) Yes. Capital Gains is treated as income of mother and taxable in her hands.

3) Incase of claiming exemption u/s 54, mother should invest her gains in a Residential house in which she is a owner or a joint owner... I dont think she can invest in a residential house where she is not a owner and claim the exemption u/s54.