Capital gains from two persons into a single property in joint names.

Hi

Yes, you daughter and wife can invest jointly in one property provided it is to be used for a residential purpose. Construction of house shall be to be done within 3 years of sale of the old property.

Your wife and daughter shall be eligible for exemption under section 54F provided the investment in new land has been made before the date of return filing. They have to invest the entire sales consideration that they have received on sale of old plots.

In case only part of the sales consideration is invested before the date of filing of return or the due date of filing of return, whichever is earlier, the balance amount needs to be deposited in CGDS account.

Further, it would be mandatory to construct a residential house on the plot of land so purchases within 3 years of sale of the old plots.

We may discuss the issues further over a call.

Construction should be of a residential property only. Exemption is not available in case of investment in commercial property.

Please note that the entire sales consideration needs to be invested in a residential house property in order to claim full capital gain exemption and not just the capital gain amount. 

Hello,

Yes, your wife and your daughter can claim exemption from their respective capital gain for the investment of the sale proceeds in a residential property in joint names.

If the investment amount is less than the sale proceeds received, the proportionate exemption would be available.

I hope this answer satisfies your requirements. 

Regards,

CA Hunny Badlani

For construction, the timelimit is of 3 Years. 

No, the exemption is for investment in residential property and not commercial property.

For exemption u/s. 54F, the sale proceeds is to be invested. 

You can claim exemption only if a residential house is constructed within 3 years of sale and exemption would be available in the proportion the sale amount is invested in new house.

No exemption for commercial property.

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Thank you

You need to invest entire sale consideration and not just ltcg.

You can show nexus that for residential house sale amount of plot was used and for commercial property loan was used.

You can construct only one house and both of them should not be owning more than 1 house at time of sale of open plot.

Tax benefit cannot be claimed on construction of commercial building. Also the construction should be completed within the period of three years from sale of original property.

- They both can invest in purchase of plot but exemption would be available only if residential house will be constructed and not commercial. Capital gain would be exempt proportionate to the investment of the sale consideration. Construction should be completed within 3 years from the date of transfer of the individual plots. Unless invested in new plot, park the amount in Capital gain deposit scheme. Show the transactions in the iTR of both.

- Please take phone consultation for detailed discussion and filing of the ITR.

Dear Sir,

Hope you are doing well !!

Yes, you both can claim capital gain exemption.

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.

It is advisable to take a phone consultation for detailed discussion.