Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 February 2013 sir
we are a family with 2 brother and just we sold a residential house which was in joint name and after this we are getting separated.
we are having another residential house also in joint name ,now i am purchasing half of share from my brother so my question is
1) can i claim it as a investment U/s 54 (Half share purchased from my brother)
2) When i already had a residential house in my name

@VaibhavJ

@VaibhavJ (Expert)
Follow

27 February 2013 Hi,

Section 54 lays emphasis on the use of the property mainly for the purpose of assessee or his parents’ own residence. If an assessee has retained more than one house for the purpose of his own or the parents’own residence, and has used them for such residence, and not for any other purpose, the capital gains arising on transfer of each of such house would qualify for exemption under section 54, provided the other conditions spelt out therein are fulfilled.

Letter : No. 207/24/76-IT(A-II), dated 25-3-1977.

So, you can purchase part share from your brother even if you have existing property & claim exemption u/s 54.

Thanks!!