Tax exemption while buying a house by selling another

Hi,

We have a house in the name of my father bought in December, 2002. The property was taken by availing loan which has been repaid. The cost was 5 lac then. We are planning to sell this property in the current or the coming fiscal year. We have already booked another property worth 40 lac (10 lac own contribution and 30 lac bank loan against my name) where we are planning to shift by the end of this fiscal year.

My question is/are:

  • How to claim capital gain tax exemption in this case u/s 54 (or any other section) and how much amount i am eligible for?
  • I believe, to claim the above, I have to get the existing property (bought in 2002) transferred to my name. What's the standard procedure for doing the same?

Thanks in advance.

Regards,

Debojyoti.

Replies (1)

Go for a deed of settlement, whereby the property is settled in your name by your father.  Many states have a concessional stamp duty rate for such a deed of settlement. 

Once that is done, the sale transaction can be brought under Section 54, provided the time limits are adhered to.

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