Ltcg & section 54f

Tax queries 239 views 2 replies

Jiten

Consultant Banking & Financial Servi

32 Points Joined September 2016

Dear Sir

Good Afternoon!

We urgently need your HELP with respect to case (details as per attachment)

I am providing the case details for your kind perusal and EXPERT Advice. Once you are through with the details below, we can SPEAK over phone too for any further information that you may need from our end. Our Main point of contention is how to handle the property booked in 2013 in a best possible manner so that there Either We Don't Have Any LTCG Tax Liability OR we have a Very Less Tax Liability on LTCG from property sold in 2016.

Please note that "B"is a Housewife but has been filing her IT Return for the Incomes from Rentals from the Commercial Property and Interest Income from the Deposits in her name.

We are actually looking for a SAFEST option so that we DONT get into any major issues from the IT Department while we comply with the IT Rules.

Look Forward to your kind assistance. Please let me know if you need any further details.

God Bless You!

Warm Regards

Jiten

Attached File : 1682166 20161211155222 ltcg queries.pdf downloaded: 94 times

Replies (2)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210685 Points Joined July 2016

ITO will take it as possessing second property, provided completion certificate already issued. So exemption under section 54F not available.

Better take exemption under section 54EC

Jiten

Consultant Banking & Financial Servi

32 Points Joined September 2016

Thanks Mr. Rambhia

In this regard I would like to share the following:

1. Name of B was included in the First Property (2004) ONLY to meet the BANK Requirements and Convenience to avoid legal hassles in case of death of either of them. Please note THAT the FUNDING of the Unit Including Availing and Repayment of Loan was DONE by A only. Hence basis all these B CAN Not be treated as OWNING the property.

2. The Possession for the 2013 Property has NOT yet been handed over to the Assesse (though Occupancy Certificate Received by the Builder) AND the Registration will happen in Jan / Feb 2017. This Property CAN be Registered in the Name of A and he can claim the benefit under Section 54F as this will be the SECOND property ONLY and the Property sold in 2016 WAS A Commercial One and NOT residential.

3. The Possession for the 2016 Property is expected in Jan 2017 and Registration in April 2017 - BASIS THE POINT 1 ABOVE, B i.e. the WIFE can Claim the Exemption Under Section 54 OR 54F (More Safe).

Request if you may provide your valuable opinion in the light of the above points.

Warm Regards

Jiten