Wife of my friend had purchased a flat about 15 years ago. She has sold the flat recently in the month of June 2016 (sold on 10th June 2016).. She has proposed to purchase a new flat with the amount of money realised through the sale of flat. The cost of new flat is more and the amount realised thro sale of existing flat is not sufficient to buy the new flat. To overcome the same, my friend will be funding / contributing the balance amount from his own sources. The new flat will be registered in the joint name of my friend as well as in the name of his wife. My query in this regard is as follows:
(1) Can my friend contribute to the new flat cost (partially) and can he be the joint owner of the new flat. Whether such joint name registration is allowed under IT Act for claiming capital gain exemption. (2) Suppose they could not buy a new flat immediately, within what date the sale consideration should be deposited with a bank in the capital gain account. (3) Within how many years they should buy a new property to avoid capital gain tax.
21 June 2016
if you don't buy new house then sale proceeds can deposit in capital gain a/c scheme 1988 up to 31.7.2017 before that you can us this money as you want, you have to buy new house with in 2 year from the date of transfer and cosntruction of house within 3 years from date of transfer. regarding the joint name buy there is many diff-2 view is available. for that you can wait for another expert opinion
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