Ltcg exemption sec 54f for jointly held new property

ajay maheshwari (14 Points)

14 March 2018  

Hi

I have a flat in my wife's name, which is now being sold and we have a Long Term Capital Gain. We are buying a new house, which will be jointly held by us. I can have hers or my name as 1st name in the property.

The Home Loan will be in my name and i will be paying the EMI. She will be contributing the entire sale proceeds of the house being sold towards the new house and also some other past savings Will she be eligible for Tax exemption on LTCG (Sec 54F) in this case.

I heard that the the Tax Payer should be independently investing in the new house and the Spouse should not be contributing at all? Just because I will also be investing in the flat, will she be eligible to claim exemption on LTCG as per Sec 54F

Even if the property value of the new property is split into two owing to joint ownership, we can still use the full sale proceeds of the house being sold over towards the 50% value of the new house Can you please throw some light and guide us

Regards Ajay