Section 54

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Ritu

Articled assistant

120 Points Joined January 2011

My mom have a house which now we are interested in selling and buying another one. But the property which we are goin to buy has to be taken on my brothers name as we will get a home loan on his name. Now i want to know whether a property can be taken jointly and whether only my brother can have his name and still my mom can claim an exemption under section 54. Also i would like to know that i have filled form 15G on my mother's name as there were no plans then that we will sell a property will this effect.

Also as to how can we arrange for money since we will sell the property and then buy another one so for the time being how wil the money be arranged. Please let me know.

Thanking You.

Regards,

Ritu Sharma.

Replies (5)

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

property can be in name of your brothers... no problem with that and exemption can also be claimed under section 54. if home loan is taken by your brothers then they will also get deduction of intt and principal amt paid under section 24 and 80C respectively....

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

no problem with 15g... it will still stand valid... if you want to arrange money then you can take advance from buyer in agreement to sale of your house.

Guest

Yes, You can claim exemption u/s 54. please google this case law;

CIT v. Kamal Wahal (2013) 351 ITR 4 (Delhi).

CIT v. Ravinder Kumar Arora (2012) 342 ITR 38 (Delhi)

as this case for u/s 54F but it will apply u/s 54 too

Ritu

Articled assistant

120 Points Joined January 2011

Thanks a lot...but one more thing how do I prove the investment...i mean what kind of papers have to be submitted while filing the return nd if its not taken on my mothers name then hw do I prove that yet it has been submitted.

Guest

You need not to submit any doucuments at the time of filing of return.

But when scrutiny initiated the you have to prove, sale of property, legal documents, invetement out of money received from sale of property, bank statement, and any other documents neccessary for completion of assessement.