Cap Gains Exemption if new house purchased jointly

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  1. Anubhav Naskar

    Anubhav Naskar New Member

    My mother purchased a house property as a single owner in 2004. She sold the house in 2015 and in the same year purchased another flat with me being a co - owner. Her capital gain comes out to be 11 lakhs. The value of new property purchased is 50 lacs. I have taken a home loan with my mother as co-applicant of 43 lakhs to purchase the property. Can she still claim deduction u/s 54 against the entire capital gain of 11 lakhs ? Please respond and help. Thanks in advance.
    Last edited: Aug 3, 2016
  2. Karan Batra

    Karan Batra Well-Known Member

    In this case, it would be assumed that she is the owner of 50% share of the property as both of you are co-owners. Therefore, her share in the property would be Rs. 25 Lakhs and therefore she can claim the exemption.

    No impact of Home Loan in this case
    Anubhav Naskar and V K Khanna like this.
  3. Anubhav Naskar

    Anubhav Naskar New Member

    Thank you very much sir. Your answer has cleared my doubts.
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