Long term capital gain tax

374 views 3 replies

rajesh

Others

69 Points Joined December 2014

HI ,

I have taken a flat . I am first owner and my father is second owner .

flat is not yet registered.

As per 54F , to avail long term capital gain person should not have more than one housing property excluding one that he is going to purchase.

My father is having already one flat and he has sold one land .

can he avail LTCG tax exemption if

a) he has one flat .

b) he is second owner in one flat that is not yet registered.

Kindly give your opinion.

Thanks

rajesh

Replies (3)

CMA Poornima Madhava

CMA

13117 Points Joined May 2009

I think exemption u/s 54f is available as ur father has one house in addition to the new property, if he had more than one, exemption may not be available

Guest

Do you mean that your father has 1 own flat, joint owner in your flat(unregistered) and is going to buy 3rd flat for 54F?

In that case he should consider investing in bonds instead of 3rd flat as even if other residential house may be either owned by the assessee wholly or partially it is considered to be owned by him. Also he cannot purchase a new house/ flat within 2 years from the date of transfer of the original asset.

[INCOME TAX APPELLATE TRIBUNAL, HYDERABAD ITA No. 557/Hyd/2012 – Assessment year 2008-09 The ITO Vs. Ms. Apsara Bhavana Sai Date of pronouncement: 13.09.2013 ]

Favorable case law: HIGH COURT OF MADRAS Dr. (Smt.) P.K. Vasanthi Rangarajan vs.

Commissioner of Income-tax TAX CASE APPEAL NO. 1435 OF 2005 JULY 6, 2012