Re-investing proceeds of current house into a new one

1. In case of section 54F the net consideration is requried to be invested & in case of section 54 the LTCG is requreid to be invested.

2. Stamp duty & regt chgs would be considered as part of the COA.

3. You cannot trasnfer the share to your wife's share. as any transfer without adequate consdieration otherwise than an agreemnt to live apart would be assessable in the hands of the transferor.

4. Yes you cna do that, provided that you can prove to the satisfaction of the AO that it is an one house.

Thanks a ton Mr Giridhar.

regards,

Gaurav

Mr Giridhar,

I need a clarification of your answer on my 2nd question. When we say that registry/stamp-duty/brokerage charges would be included in COA (means Cost of Acquisition - I guess) and hence become deductible from the LTCG, are we talking about the registry/stamp-duty/brokerage charges incurred when I bought my old property 10 years ago, or are we talking about the registry/stamp-duty/brokerage charges I am going to incur to buy the new property?

regards,

Gaurav

For your old property,  the COA would be the cost incurred by you for buying the property which would be as per Sale Deed. On that cost the cost inflation index would be applied & after that the indexed COA would be deducted from your sale consideration received for your old property.

Now you are buying a new property,  so the cost of that property would include the Stamp duty & regt charges also & that total cost as per the Sale Deed would be deducted from Capital Gains & if there is any balance remaining tax @ 20% wud be requried to be paid.

For your old property,  the COA would be the cost incurred by you for buying the property which would be as per Sale Deed. On that cost the cost inflation index would be applied & after that the indexed COA would be deducted from your sale consideration received for your old property.

Now you are buying a new property,  so the cost of that property would include the Stamp duty & regt charges also & that total cost as per the Sale Deed would be deducted from Capital Gains & if there is any balance remaining tax @ 20% wud be required to be paid.