RESIDENTIAL PROPERTY

Tax queries 549 views 3 replies

ashutosh kumar

retired

48 Points Posted on 04 June 2010

DEAR SIR,

MY WIFE HAS BOOKED A FLAT IN JOINT NAME WITH DAUGHTER.

SHE WILL GET POSSESSION IN AUGUST, 2011.

MY FATHER HAS ALSO MADE A WILL IN WHICH A PART OF RESIDENTIAL HOUSE HAS BEEN

GIVEN TO HER. MY FATHER IS ALIVE WHILE WRITING THIS QUESTION.

MY QUESTION IS

1. IF MY WIFE GETS PROPERTY THROUGH WILL BEFORE AUGUST, 2011 AND PURCHASE ANOTHER RESIDENTIAL PROPERTY THEN WHAT IS THE CAPITAL GAINS CALCULATION.

2. IF MY WIFE GETS PROPERTY THROUGH WILL AFTER AUGUST, 2011 AND PURCHASE ANOTHER RESIDENTIAL PROPERTY THEN WHAT IS THE CAPITAL GAINS CALCULATION.

THANKS.

A.KUMAR

Replies (3)

CA.G.Muguntha Narayanan

Internal Auditor at TVS Motors

2195 Points Posted on 04 June 2010

Dear Kumar,

In the present case, ur wife is gonna sell tha property acquired by her through will. So she has to buy a residential property before 2 years from the date of sale of within 1 year before the date of sale. She has booked a house on Aug 2011. In both the above cases she will eligible for CG exemption. But she should not have more than one residential property

Amir

Learner

4016 Points Posted on 04 June 2010

Daer Sir,

In both the situations you have mentioned about the acquisition of property whereas CG is charged when an asset is sold...

Where is the Sale???

Transfer of assets through "will" are exempt in the hands of transferor u/s 47.

Receipt of assets through "will" are exempt in the hands of recipient u/s 56 .

With due respect to Mukund Sir, to claim Sec 54 i:e 1 Residential House for another, assesee ccan have any number of houses. The limit, which he has mentioned applies in case of Sec 54F.