Tax exemption on LTCG tax

Hi

Yes, capital gain exemption shall be available.

Dear Sir,

Hope you are doing well !!

The law does not clearly say that the new property must be bought only in the name of the seller and not on anybody else’s name. Hence, there are interpretations that Joint ownership can be acceptable but exemption can be limited to the share of ownership.

Alternatively and/or additionally, you can invest the capital gains of up to Rs 50 lakhs in bonds of NHAI or REC, within six months of its accrual and get the exemption u/s 54EC

Please note that in order to claim exemption, you need to invest the capital gain amount if a house property is sold. However, in case of sale of a land, entire sales consideration needs to be invested.

Yes he can but it will be better if that person gets his name as co owner otherwise it would attract litigation.

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Thank you

Dear Sir,

Here is my reply to your query:

The case you mentioned is a debatable issue but there are some case in which the ITAT had allowed the deduction in case the amount is invested in the name of the wife.

Here is a case in which the exemption is allowed:

Shri Rajkumar Mandhani Vs DCIT (ITAT Hyderabad)

Here is the link https://taxguru.in/income-tax/section-54f-exemption-eligible-property-purchased-wifes-name.html

Thanks and Regards 

Divya Chugh 

Hello,

Yes, the exemption from LTCG would be available to the husband on investment of the sale proceeds in the name of his spouse.

Though the same is debatable, still case laws favouring the assessee are available for you to proceed with.

I hope that this answer satisfies your requirements.

Regards,

CA Hunny Badlani