As per IT Act, on sale of property, capital gains thereon maybe exempted subject to certain conditions. For eg. By purchasing another residential property as mentioned u/s 54.
In our case, property sold is on Mr. H's name and proceeds credited to his bank account. A new property was bought within 3 months for his son, Mr. B and payment for the same was made from the same bank account. All the sale proceeds have been exhausted in buying this new property. However, this new house taken for his son Mr. B is in Mr. B's name. (as per the agreement)
So the question here is can Mr. H still claim exemption u/s 54 as the proceeds of the sale have been entirely used in buying the new house? If no, what is the remedy for such a situation?
Please help!!
CAclubindia
