I transfered one 1960 ancestral house in my name in 2012 and sold it in 2014 and invested the entire proceeds to buy another home in 2015 BUT in my wifes name. Now my query is in my IT return can I show exeption under 54a/b/c/d/e regards full use of CGains so that I am not charged to tax. OR since the property was bought in wifes name I will be charged CG tax??
3 Replies
Harihar Mandal
(CA)
(504 Points)
Replied 01 June 2015
Yes, you can take the exemption u/s 54. It is not mentioned in the section regarding the ownership of new residential property purchased, but on the basis of case law cited you can take the exemption. [CIT v. V. Natarajan 154 Taxman 399 (Mad.) [2006]]
Udgam Koomar
(Tax Technologist)
(1949 Points)
Replied 02 June 2015
Okay sir, now I wanted to know the house was sold in Oct14 but reinvested in April15 so next FY starts so still can I mention section 54 benifit in the returns for Ay 2015-16 in which the house was sold or should I wait till next year returns i.e. Ay 2016-17?
Harihar Mandal
(CA)
(504 Points)
Replied 09 June 2015
Yes sir, you can take exemption in AY 2015-16 as you are acquiring the new house within time period allowed under section 54.
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