Capital Gains on sale of 2 Residential Properties

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Aajay (Querist)
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03 March 2010 One of my client sold 2 residential properties during year 2008-09. One was used by him for residential purposes and the second was used by brother in which both of brothers are equal share. Capital gain is arised in both transactions. out of the sale proceed of the both properties he bought a new residential property that he got registered in the name of his wife in order to save stamp paper duty. Pls suggest tax liability and Tax saving options? Can he enjoy deduction u/s 54 in respect of property registered in the name of his wife?

Regds

N.B.

shrikant

shrikant (Expert)
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03 March 2010 Dear friend

He can claim deduction u/s54 as there is no specific provision in this regard. You can show it is gift given and claim deduction.