Hi, Could you please help me with below query on Exemption of Capital Gain Tax under section 54
Situation: My father is buying a new flat for Rs 30Lacs.We are planning to buy new flat in joint name of me & my father. We are planing to take a home loan of rs 10 Lacs in joint name to cover the expenses of new flat.
Once he has bought the house, he plans to sell his old flat for 30 lacs. He has owned old flat for 15 years.
Queries:
1. I understand capital gain taxis exempted if new property is bought before 1 year of sale of old property. Is this calender year or financial year i.e. if we buy new property in the end of AY2014-15(Feb14) and sell old property in mid AY2015-16(Oct-2014) will he still be eligible for exemption.
2. In case he is eligible, how will this be filed in return. Do we need to show LT capital gain in ITR of AY14-15 and in which header.How to get exemption as new property is yet to be bought.
3. If the new property is bought in joint name of me & my father, can he still get exemption on LTCG under section 54. If yes, do we need to show my & my father's share/contribution in sale deed of new house to avail tax benifit.
Thanks,
Ravi
