Capital gain tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 September 2013 iam the family head and iam filing my incometax return every year, i purchased a flat at hyderabad in my children name he is a student and he is a major, the property was purchased in the year 2008 and the said above property was sold in the year 2012, when i sold the property, purchaser given the cheque in the name of my son when i went to bank to withdraw the cheque banker asked me the pan card of my children so i gave my son pan card number and the banker suggest me to withdraw the money through your son bank account only you cant draw this money into your account, i submitted the cheque in my sons account in that day i withdraw the money of Rs.50000/- for the purpose of advance for new land to built a new residential house in that land, that land was registered in my wifes name, if i built a new house in that land can i avail the capital gain tax benefit or not.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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15 September 2013 You can make the registration of the House in the name of your wife no Problem...

Yes you can avail Exemption under Sec 54..

Subjected to some conditions:

No expenses should be done by wife (if the capital gainer is husband) or husband (if the capital gainer is wife) in whose name the property is being registered.

There must be reference in the conveyance deed about husband (if the capital gainer is husband) or wife (if the capital gainer is wife) that he/she paid the money for the property.

An affidavit should be kept to show the wife (if the capital gainer is husband) or husband (if the capital gainer is wife) name is just for the sake of holding the property.

Thus the assessee (capital gainer) is eligible for availing deduction even if the title deed contains the name of his/her spouse.