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Property purchase and capital gain related query

23 April 2018

Hi,

We have sold one property one month back which was on the name of my mother only and she is house wife. We have around 50 lacs of capital gain in this deal.

I have purchased one under construction property 2 years back from my name which is costing me around 60 lac and in next 2 year this will be ready as per construction status. Please tell if i transfer my under construction property to my mother name completely can this transfer be consider as purchase of property to save capital gain for my mother?

Kindly suggest.

Thanks & Regards,

Yash Singh

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (174190 Points)
Replied 23 April 2018

Ideally, to save capital gains tax u/s. 54; your mother should purchase the property (or any other) from you or builder by way of registered agreement (with stamp duty paid), within 2 years from sell of the house property.

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yash singh (3 Points)
Replied 23 April 2018

Thanks for your reply sir. it means if this newly purchase under construction property won`t complete in 2 years than we will have to pay capital gain tax after that?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (174190 Points)
Replied 23 April 2018

First of your mother should be owner/co-owner of the property.

Once she has invested her shares in the property, and in case, the construction is delayed by builder; she can still claim for capital gain exemption. Various courts have allowed the exemption in similar cases where the situation had been beyond control of assessee.

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