An assessee sold his house to another person. And he invest the capital gain amount in a house which is purchased in the name of his wife. Then can he take the benefit U/s 54.
7 Replies
Kanhaiya
(Tax Practicner)
(42 Points)
Replied 03 September 2015
I think so he can take the benefit U/s 54. nowhere is mentioned in law that an assesse can take the benefit only for purchasing the house in the name of himself.
S. Shiroor
(Others)
(1207 Points)
Replied 03 September 2015
His and his Wife's PAN are different.
Old House sold under PAN1
New House to be purchased under PAN1 + PAN2 or PAN1 alone
PAN2 alone will not be allowed by IT dept under sec54. unless PAN1 expires in between
Experts also give some idea Please.
Manish Mehta
(Manger)
(115 Points)
Replied 03 September 2015
Yes exception is allowed assessee need to purchase residential house within the specified time. It doesn't matters whether he purchased on its own name or his wife name
dhaval
(artical assitant)
(28 Points)
Replied 03 September 2015
Agree with Manish Mehta...
There are ample of case laws available on this fact. Wherein it was held that the purpose of this exemption is that assessee should invest the gain amount in the new property, irrespective of whether the new property was acquired in his wife's name.
Swanand Agavekar
(Student)
(43 Points)
Replied 03 September 2015
Assessee is entitled to claim exemption in respect of utilization of sale proceeds for investment in other house property...
According to - CIT vs. Kamal Wahal (2013) 351 ITR 4 Delhi
Investment can be made in the name of wife. But, investment must be made only from the income of the seller.
Miss Rinkal
(Student)
(1309 Points)
Replied 05 September 2015
Yes Exemption u/s 54 is available as you are the deemed owner u/s 27. The house can be purchased in the name of wife.
However clubbing provisions will get attracted if any income is derived from such HP. I.E to say that if you already own a house and the new house purchased is in wife's name then wife prop will be treated as dlop as you are the deemed owner
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