Property in the name of wife is sold and the new property is purchased in the name of husband and wife for constructing a house. In this case, is it possible to claim exemption u/s 54F
2 Replies
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 21 July 2019
1. As per sec 54F exemption will be available for a sale of a capital asset and purchase residential house property within a specified period.
2. The above section says that an assessee should have purchased within 2 years after or 1 year before the date of sale or constructed a residential property within a period of 3 years.
3. The provision clearly says assessee should have purchased or constructed. From a plain reading, it can be said the house property should be in the name of the assessee.
4. But referring a case law Shri Vivek Jain Vs. DCIT (ITAT Jaipur) where the decision was in favor of the assessee where the sale consideration of a capital asset was used to purchase a property in his wife's name. The exemption cannot be denied merely because the property was purchased in assessee's wife and exemption provisions are to be interpreted liberally and not from a strict angle.
5. In conclusion, based on the above case law exmeption, u/s 54F will be available even if the property was purchased in the name of his wife.
Please correct me if the above solution has an alternative view.
Recent Topics
- Agricultural Business Loss
- Reporting in gstr9 of ITC of Previous year reverse
- Tax on Reimbursement of House Rent
- MAHARASHTRA CHARITY COMMISSIONER WEBSITE
- Explanation 3 to section 11(1) read with section 4
- Ammendment in Partnership On Death of Partner and
- TDS Provisions applicability Tax Audit Individual
- NAME CHANGE OF HUF
- Advisory for Reporting TDS Deducted by scrap Deale
- Section 194 J Technical Service/Professional Servi
Related Threads
CAclubindia
