Capital gains

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2012 Mr.X,bought a property in name of his nephew,
would he be eligible for CG exemption?does nephew comes under the relation lenial descendant?if so how,plz explain.
*edited*
belated thanks mr.bafna

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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22 July 2012 For getting exemption the property must be
purchased by the Individual in his name only. If he himself feels an unlucky fellow or otherwise, he can purchase the same in his spouse's name. By purchasing the property in nephew's name, he will loose the CG exemption.
.
Lineal Descendant in respect to an individual means those who are in a direct line under him. His son is Lineal Descendant of him as he is in direct line.
If we consider his nephew's relation it goes diagonally. He is not a relative as per definition given U/s 2(41) of the IT Act.
.
For more details you may connect-
http://www.lawyersclubindia.com/forum/List-of-Relitives-u-s-56-2-VII-of-Income-Tax-Act-19145.asp#.UAvOcGHaa5w

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