Long term capital gains on sale of residential property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 June 2011 A property sold at 58 lacs in 2011 & the same was purchased in 2004 for 20 lacs. If the proceeds are invested by the owner in a property in the name of his son. Wat is the tax liability ? Does he get the benefit of the OS loan on the property sold ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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05 June 2011 The exact tax liability can not be ascertained on this transaction as
the details are required in the form of Financial Year and not in the form of Calendar year.
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Father will have to pay long term capital gain tax if he himself does not purchases the property in his name.
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There is no benefit in respect of OS loan on the property sold.

Querist : Anonymous

Querist : Anonymous (Querist)

06 June 2011 Thank you..... The fy for purchase is 2004-05 & sale is 2011-12. So he can be a co owner in the property with his son ?

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 June 2011 Yes , in that case capital exemption can be availed.