Capital Gains Tax

This query is : Resolved

RAMYA (Querist)
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05 June 2020 I am intending to purchase a flat for around one crore by taking a housing loan in the names of my husband and myself.
My mother likes to help me in this regard by disposing off her self acquired property and support me to the extent of 50% of the cost of the new flat.
If I include my mother's name as a third applicant of housing loan and register the new flat in the names of my mother and myself, can she claim exemption under section 54 of the Income Tax Act ?
Sale consideration of mother's house = 90 Lakhs as expected
Indexed Cost of Acquisition = 20 Lakhs
Capital Gain = 70 Lakhs
Cost of new flat = 100 Lakhs
Secondly, can my husband and I claim exemption u/s 80C and deduction u/s.24
I would be really grateful to you if you could help me in this regard.

C.A. Mayur J. Raiyani

C.A. Mayur J. Raiyani (Expert)
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07 June 2020 in my view your mother cannot claim deduction u/s 54. You and your husband can claim u/s 80C and 24 to the extent of your respective share in property.