Section 54 of income tax act,1961

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Querist : Anonymous

Querist : Anonymous (Querist)

03 February 2015 There is one RHP in my Mother's name.Now, I want to sell that RHP and buy a new one with a housing loan. Loan will be on me and my brother's name and Dastavej will be on my mother's name. Then how would Sec.54 work and in whose books new RHP will be shown.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 February 2015 As you are buying the house in the name of your mother utilizing the entire capital gain in the purchase of new house you are complying with the provision of section 54.
Obtaining loan and showing in the books of other person is irrelevant.

Rupesh Jain

Rupesh Jain (Expert)
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03 February 2015 you have to buy house in your mother anme then you can get the benefit of section 54

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Querist : Anonymous

Querist : Anonymous (Querist)

05 February 2015 Thank you sir for your suggestion.But the question is Should we have to show new RHP in our both books or it should be shown in my mother's books.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 February 2015 To the extent of loan taken it can be shown in both the books.

Querist : Anonymous

Querist : Anonymous (Querist)

06 February 2015 If I take full amount of loan then full property will be shown in our books, in that case how would my mother get an exemption.??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 February 2015 Accounting in the books of accounts is irrelevant for capital gain claim it is only in whose name the document is executed.