I have sell my property and details are as follow Acquisition price - 3.5 Lakh Acquisition year - 2001 Sell price - 20 lakhs Sell year - 2016 Dec I have purchase new flat @ 33.5 lakhs which is under construction and get possession in 10 months. I have 2 nos another properties and out of which 1 is jointly with wife ( 1st owners) Please advice for exemption of capital gain on the property sell
Hi,
You have not mentioned the type of property sold.
If the property sold is not a residential house property, then you cannot claim benefit u/s 54F as you own more than one house other than the new house (I assume the properties you mentioned are House properties).
If the property sold is a residential house property, then you can claim full exemption from the Long Term Capital Gain u/s 54. In Section 54, there is no such condition regarding no. of houses owned other than the new house.
I have sold residential property and in that place buy residential property without any loan But I have taken loan on my another property which I have purchased 2 years back. So can I claim tax benefit on interest paid in current year..
I have 3 properties - A, B and C. Property A - purchased in 2001 at 3.5 lakhs and spend 1.0 lakhs for renovation in 2012. I sold this property in Dec 2016 at 10 lakhs Property B- Purchased in 2005 and still retained Property C- purchased in 2015 with joint registration and my wife is 1st owner. I have taken loan of Rs 25 Lakhs on this property. Can I claim tax benefit in current year of 2016-17 for 1) Long term capital gain against property A 2) Tax benefit on the interest paid for loan of property C
Some corrections I have 3 properties - A, B and C. Property A - purchased in 2001 at 3.5 lakhs and spend 1.0 lakhs for renovation in 2012. I sold this property in Dec 2016 at 20 lakhs and purchased new property at 33.5 Lakhs Property B- Purchased in 2005 and still retained Property C- purchased in 2015 with joint registration and my wife is 1st owner. I have taken loan of Rs 25 Lakhs on this property. Can I claim tax benefit in current year of 2016-17 for 1) Long term capital gain against property A 2) Tax benefit on the interest paid for loan of property C
Hi,
To claim capital gain deduction u/s 54, the property sold should be a house used for residence held for at least 36 months and the new property should also be a house property to be purchased 1 year before or 2 years after the sale of property, or constructed within 3 years. If the cost of new property is more than the Capital Gain, then entire Capital Gain will be exempt u/s 54.
Looks like you satisfy all the conditions prescribed u/s 54.
1) Yes. You can claim full Benefit u/s 54 for the Property A sold
2) Yes. You can claim Deduction for Housing loan interest and principal repayment. However, since your wife is also a co-owner of Property C, you both will have to share the deduction. If she is not claiming any deduction, then you can claim full deduction.
1. Sir if you sell residential property and purchase residential property then there is no restriction on number of properties held.
2. You can show the Property C as letout , show some rent and claim the interest paid.
Dear Sir,
Yes, you can claim interest rebate if your a joint owner and you have funded the property.
LTCG benefit can be claimed if your have purchased the property C within one year before the date of sale of property A or within 2 years after the sale or property A.
Please feel free to call/ revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Hello Sir,
To sum up your query, If you are buying a House Property with the sale proceeds of a house property then the entire capital gain is exempt if fully invested, which appears to be in your case.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
