Capital gain tax exemption

Dear Sir,

- Yes under section 54 of the Act, you can take the benefit of exemption.

- You and your wife needs to show the capital gain separately in their ITR's assuming that the house in the name of your wife was financed from her own sources otherwise the entire capital gain will be shown in your hands.

- Ask the purchaser to deduct TDS accordingly as per above point. Purchaser needs to deduct TDS@1% if the sale consideration exceeds Rs.50 lacs (per immovable property).

- Also you need to deduct TDS@1% if the above conditions are fulfilled.

Thanks

Hi

Yes, you can utilize the capital gains of both properties to invest in one residential house property and claim exemption under section 54.

You need to show respective capital gains in both of your's ITRs and claim exemption thereof. Check the applicability of clubbing provisions.

yes you can take benefit of LTCG in joint property

Yes if you invest well within the stipulated time as per sec 54

Hi,

Yes, you can utilize the capital gains of both properties to buy one residential house property and claim exemption under section 54.

regards,

Nikhil

Yes.. since the house is in joint name, the cost can be shared between both

Yes, you both can claim exemptionare by investing in one big flat, if other conditions are satisfied.

Please note that, if you can buy the home before the due date of return filing, then you will have to park the money in cgds account.

Hi

Yes you both can claim the exemption , declare capital gain amount in your itrs and claim exemption under sec 54 by investing jointly.

yes you are eligible

Yes you can claim the exemption U/s 54 by investing LTCG into a single Flat on Joint Name, but in the ratio of the share in the Flat. You can claim the exemption in both the retuns of yours.

The Flat should be purchased Before One Year or After Two Years, in India, from the date of transfer of the old House or should construct a residential house in India within a period of three years from the date of transfer , to claim the exmption U/s 54 of Income Tax Act .

Dear Sir,

Hope you are doing well !

Yes, you can take the benefit of exemption for both flats under section 54 by investing LTCG into a single Flat on joint Name, but in the ratio of the share in the Flat.

Please find below the brief note on section 54 for your better understanding :

Section 54 of Income-Tax Act, 1961 provides for tax exemption on long term capital gains that result from sale of residential house property, provided that the residential house was sold after 3 years from the date of acquisition.

Under section 54, any individual or Hindu Undivided Family (HUF) owning a residential house property can claim tax exemption.

Under Section 54, you can claim deduction on long term capital gain from sale of residential house property by investing such gains in either Purchase of one residential house property within 1 year before or 2 years after the date of sale or Construction of one residential house property within 3 years from the date of sale.

Calculation of Long Term Capital Gains:

For long term capital gains, you can also take benefit of Capital Gain Index. Hence, long term capital gains can be calculated by the formula:

Long Term Capital Gain = Sale Consideration – (Indexed Cost of Acquisition + Indexed Cost of Improvement + Cost of Transfer)

Capital Gain Account Scheme:

In order to avail tax exemption under section 54 you must do either of the following before filing income tax returns for the year in which you sold the property.

Invest capital gains amount in a residential house property, or

Deposit your entire capital gain amount in a Capital Gain Account Scheme (CGAS) until you purchase or construct your house property.

Thanks & Regards,

Payal Chhajed