Exemption under section 54 for a joint property

S Nagar (Finance Professional) (76 Points)

25 May 2014  

Dear Respected Experts,

I have sold a residential property for 40 lacs and my wife a separate residential property for 10 lacs. Sale proceeds are deposited into two separate LTCG account 'B' ( TDR) . We have decided to buy a residential property for 50 lacs. My questions are:

  1. Should we clealry mention our shares - 80% for myself and 20% for my wife in the registry of the property, in order to claim exemption under section 54. Can we still claim exemption without mentioning the share percentage in registry. Which is a better and safer approach ?
  2. Can I add name of my son in registry and still claim exemption under section 54. My son is an earning adult.
  3. In my LTCG account , I have received an interest of 4 lacs ( also declared in my ITR). I need only 40 lacs  to buy property. Will bank allow me to withdraw this interest part also and  transfer to my bank account. ideally this is my income (also declared in ITR) , so It should be transf
  4. Are banks within their rights to ask for documents to prove that a property is being bought by me .What doucments ( other than form C,D) bank normally ask before allowing withdrawal from LTCG account.

Thanks,

S Nagar