30 June 2015
Hi, one of my clients is trying to sell a house a property (land + house) for 100 lacs. He acquired it in inheritance and not sure of its value but estimates to be around 5 lac in 1981. Further to that he did some improvements in 1998 with about another 10 lac.
Now, he wants to sell only 1/3rd of that property now and plans to sell other parts later down the line of 1-2 years.
Questions: 1. Can he claim exemption for selling part of his property?
2. He plans to buy two residential flats which he is going to join from inside. Will that be considered 1 house or 2 house for purpose of exemption?
3. What exemption can he get and for what duration?
4. What happens to other 2 parts of house when he sells them 1-2 years later? Can he again claim exemption? (please note on legal documents his house has not been bifurcated in 3 parts, it is just one)
CAclubindia
