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Utilisation of sale proceeds for purchase house for dependent sister
I am senior citizen and in July 2016 I have disposed a flat and sale proceeds thereof are intended for the purchase of house for sister who is 55 years old and having no other source of income.Am I liable to capital gain ?
Replies (3)
You are liable to tax on capital gain. However you can claim exemption u/s 54 by investing at least the amount of gain in the new flat. You should be the 1st holder & your sister the 2nd holder
If the income is assessable in your hands and as there's only one income, capital gain upto the basic exemption limit will not be taxed.
For claiming exemption u/s 54, the residential house must be a long term capital asset.
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