I have recently sold my apartment and got a long term capital gain of Rs 25 lacs. This apartment was held in my name singly and purchased out of my own income. I now want to reinvest this amount in another apartment. However I intend to buy the new apartment jointly with my husband as I cannot afford it independently and would need him to contribute the balance amount from his income. Would such an investment (in a joint property) exempt my capital gain from tax under Section 54?
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LT Capital Gains on property sale
Replies (16)
You shall be able to claim exemption to the extent of your capital gain invested into that new property. But the apartment should also be in your name jointly.
Agree with tarun sir
Dear Deepika,
You will get exemption under sec 54.The cost of acqusition of the new residential house will be your share only and will not include your husband's share.
Please see to it that the ownership ratio is specified or the sources of funds for buying the new residential house can be traced to determine your share in the cost of acquisition.
Fully agree with Fatema's views.
Yes u can claim exemption u/s 54 provided u purchase the house within 2 years
and exemption will b only on d basis of ur share
Agreed With Mr Tarun Thanks...!!
YAA I AGREE WITH ANUP RATHI THAT EXEMPTION U/S 54 WILL BE LIMITED TO EXTENT OF UR SHARE IN INVESTMENT ONLY
For claiming Exemption in this case make sure of following things:-
1) New House should be in the Joint Name of Your's and Your's Husband.
2) Your's share and your's Husband Share is CLEARLY DEFINED IN THE AGREEMENT.
3) Your Share should constitute ALEAST 25 lacs so that TOTAL Exemption can be claimed.
4) New House should be acquired within 2 years from the date of SALE of Old House
5) Deposit the AMOUNT WITH A BANK IN CAPITAL GAIN ACCOUNT SCHEME BEFORE THE DUE DATE OF FURNISHING YOUR RETURN OF INCOME.
Totally agreed with Amir..
I think this answers the question fully..
Thanks,
Totally agreed with Amir..
I think this answers the question fully..
Thanks,
Agree with Amir....................
Hellow Deepika
Hiya
I m totally Agree with Amir but 1 thing to be added is u can claim exemption only to the extent of ur share of investment
Hellow Deepika
Hiya
I m totally Agree with Amir but 1 thing to be added is u can claim exemption only to the extent of ur share of investment ok
yes u can avail exemption under section 54. in case of long term capital gains on the transfer of house property. but u have to invest the amount in purchase new house with in two years after the transfer of original house. u avail exemption up to the amount invested but it is not more than amount of capital gain.
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