Exemption for capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2014 Individual sold his land for Rs.15 lacs and purchased 2 Flat's. 1st of Rs. 8,25,000 on his name & 2nd of Rs. 18,00,000 in the name of his son. Please advise on the allowability of exemption u/s 54 of income tax act. How he can get Exemption for capital gain on both Flat's?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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17 February 2014 Against sale of land you received 15L. This is to be indexed and out of this you have purchased flat for 8.25. This 8.25 shall be exempted from the indexation value of land.

Purchase of flat in the name of your son will not qualify for exemption out of sale proceed of 15L. Anyhow if you want the full exemption ten the capital gain out of 15 L less invested in flat 8.25 be deposited in Bonds to qualify for exemption u/s 54EC