Sec 54 income tax act - a question

A residential house prioperty is owned by two Co-owners - when the property is sold will each of the  co-owners be seperately  entitiled to claim the benifit of Sec 54 of the Income Tax Act?

Eg:

A,and B own a residential House as follows:

- Each have an equal share

- poperty was bought many years ago (more than 3)  and the inxed cost is 1Cr on date of sale

- The property is sold foir 5 Cr

- Capital Gain is (Rs 5 CR - RS 1 Cr) Rs 4CR.

Question is can both A and B (both seperately take advanrtage of Sec 54 and reinvest the capital gains in another house property ( 2 years in case of purchase and 3 years in case of construct )? i.e can they both buy individual properties of Rs 2 Cr eachj and not pay any capital gains tax?

Many Thanks

 

Gopal Mirchandani

 

 

 

 

 

 

Replies (2)
yes they can separately claim deduction of their respective share under section 54
Benifit of deduction u/s 54 is available to each co owner seperately provided both full fill the condition of sec 54 and limited to their share of capital gain.

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