LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Sale of land

sagar (article) (37 Points)

18 October 2020

Mr.X is having a plot in his name which he purchased in the year 1991 at 15000 and now he sold the same at 27laks and purchased a plot for Rs 46laks in his son name. because he is retired and not eligible for loan. so my query is can Mr.X claim exemption u/s 54F or he has to pay tax on LTCG at 20%?

Reply
Follow
Share

10 Replies

yugal jain (197 Points)
Replied 18 October 2020

Advise him to be a joint owner in the new plot

2 Like

ayusmita (Tax consultant) (5885 Points)
Replied 19 October 2020

Mr x should be the owner along with his son

1 Like

Aman Goyal (21 Points)
Replied 19 October 2020

U can claim exemption if you your your wife is the owner

1 Like

sagar (article) (37 Points)
Replied 19 October 2020

If he is joint owner then exemption can be claimed fully or half?

Aman Goyal (21 Points)
Replied 19 October 2020

Fully

2 Like

rama krishnan (12234 Points)
Replied 19 October 2020

If you're joint owner you can claim to the extent your share in the new property (make sure to construct a house within 3 years from the date of sale old land property)

yugal jain (197 Points)
Replied 19 October 2020

It is advisable to be the joint owner and claim the exemption

ayusmita (Tax consultant) (5885 Points)
Replied 19 October 2020

Exemption is as per your shares in the newly owned property

yugal jain (197 Points)
Replied 19 October 2020

Section 54 F mandates that the house should be purchased by the assessee and it does not stipulate that the house should be purchased in the name of the assessee only...there is a case law on it Shri Ramphal Hooda Vs ITO(ITAT Delhi)

so assessee will be allowed to claim full exemption