is ownership of the property necessary to avail exemption u/s 54EC?

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Abhinav (Querist)
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04 June 2016 I'm one of the 4 daughters of my father, who died without any will. as per the rules of local authority (awas vikas) property can be transfered to only one person, hence we signed an agreement, where the property was transferred to one of my sister, who sold it and divided the proceeds equally among others. to avoid tax, I bought NHIA bonds. while filling IT Return(ITR2),I was required to give the date of acquisition of the property(I don't have my name on any paper,related to the property- it was in the name of my father and later transferred to my sister, for sale). 1.can I claim deduction u/s54EC or the proceeds received from my sister will be shown as gift? 2. is the agreement signed among ourselves no good?

JUGAL PATEL

JUGAL PATEL (Expert)
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04 June 2016 Capital Gain will apply to the asseesee on whoes name the property was transfered. To divide the amount is your family arrangements. So you can not take the benefit of 54EC as you are not liable for Capital Gain.

JUGAL PATEL

JUGAL PATEL (Expert)
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04 June 2016 Also all the facts of case should be cleared so write me if any issue 9711118662 or cajugalpatel@gmail.com

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Abhinav

Abhinav (Querist)
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04 June 2016 Thanks for your replies. The essence of the agreement is like that of a NOC and not a POA. As of the agreement- it states that the legal heirs don't object to the transfer of the property in the name of one sister. It also states that, this agreement is being made only due to the rules of local development authority prohibiting more than one person from selling the house. I will also like to state that the agreement mentions the party to whom sale is to be made along with the amount of sale consideration and share of each sister.