A residential house prioperty is owned by two Co-owners - when the property is sold will each of the co-owners be seperately entitiled to claim the benifit of Sec 54 of the Income Tax Act?
Eg:
A,and B own a residential House as follows:
- Each have an equal share
- poperty was bought many years ago (more than 3) and the inxed cost is 1Cr on date of sale
- The property is sold foir 5 Cr
- Capital Gain is (Rs 5 CR - RS 1 Cr) Rs 4CR.
Question is can both A and B (both seperately take advanrtage of Sec 54 and reinvest the capital gains in another house property ( 2 years in case of purchase and 3 years in case of construct )? i.e can they both buy individual properties of Rs 2 Cr eachj and not pay any capital gains tax?
Many Thanks
Gopal Mirchandani
CAclubindia
