MRS X HAS SOLD AGRICULTURAL LAND AND HAVE A GAIN OF 25 LACS (SALE VALUE 40 LACS) , SHE PURCHASED A FLAT IN JOINT NAME OF HERSELF AND HER SON (NO OTHER FLAT/HOUSE IN HER NAME) AND INVESTED 40 LACS IN FLAT AND HER SON HAS PAID 10 LACS FOR THAT FLAT.
IS THERE ANY PROBLEM IF THE NEW FLAT IS IN JOINT NAME
No,problem.Sec54F was inserted by Government to encourage House hold sector.They will see whether you invested in Residential property or not but not bother about whether you purchased the property in assessee name or as a joint property to give you capital gain exemption.This is just my opinion,i too need a furthur clarification
As such there is no problem in no problem in joint ownership, there are several HC judgements
(In one it was husband and wife CIT v. Ravinder Kumar Arora 342 ITR 38, and I have quoted few more in my earlier posts)
But payment made by the son would be a problem, since payment should have been made by the assesse only, though she could use whatever source of funds she wanted. So there will be a proportionate disallowance, to the extent sum not paid by assessee herself
Agree with "Z",Yes payment for such transaction should be made by the assessee him/herself !
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