Capital Gain by Father Invested in Sons Property

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  1. ajet1618

    ajet1618 New Member

    My father holds a property since 25 years. Which we will sell in order to partly fund the purchase of a new a government scheme allotted flat in My name. Since the flat was bought by father almost 25 years ago, he will make a considerable amount of profit even after calculating for its inflated cost as per inflation index. However he will be investing this whole amount towards buying a residential property within 1-2 years of the purchase ; however new property being a govt allotted scheme will be in my name only and not anyone elses. So a father re investing his long term capital gain in sons property; will it be eligible for exemption as per section 54. ( As per what Ive read ; section 54 does not specify if the capital gain has to be re invested in a property held in the name of assesse, which means its not necessary the newly purchased property has to be in my fathers name for him to avail the exemption.) Request you to help me out with facts.
  2. Manoj Mehra

    Manoj Mehra Active Member

    1. No, the person who has sold the property should reinvest the capital gains in his own name to claim exemption.
    2. Check with the govt. if your father can be added as a joint owner of the property. The land development authority of most states allows you to add a joint owner for a property which has been allotted in your name if the joint owner is in your blood relation
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