07 August 2013
A has sold his plot for Rs.50 lacs. Long term capital gain is 25 lacs. Now A wants to construt a house on the plot of B (Brother of A). Query : 1. can A get exemption u/s 54 if he invests the required amount in the construction of the house?
08 August 2013
The house property must be registered in the name of the assessee who sold the asset. Accordingly the house property needs to be registered in the name of A if he wants to avail exemption u/s 54.
08 August 2013
plot is registered in the name of B. He is brother of A. Is it required to get registered the house only in the name of B to get the benifit of sec. 54? Is there is any other remedy to avoid the registration exp. ?
11 August 2013
You are my brother. I am having a plot. You have constructed a House on my plot. . I can say that the house is mine as the land is mine. I can demolish the structure also. . How you will prove that you have constructed the house ? . The same thing is possible between the two brothers also. . It is better to incur the registration expenses. Tell your brother to gift the plot to you. What is his reaction ? If he does, you construct the property and stay with him.
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