Capital Gain Tax on Sale of Jointly owned Property

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  1. Prashant Thakur

    Prashant Thakur New Member

    I have purchased 1 Flat in year2007 ,which was jointly owned by Me & My Mother
    all payments to Builder & Home Loan went from My account.
    i have purchase another Flat in year Oct 2014 of Rs 3.55 cr & now i want to sale 2007 Flat.
    2007 Flats Current Indextation cost is 1.30cr & which i want sale around 4.50 cr before March 2015
    so please guid me that , how should i save capital Gain tax under this case ?
    thank you.
  2. rudrabose

    rudrabose Active Member

    Dear @Prashant Thakur

    You can claim exemption from Capital Gains by the following 2 methods:-
    1. Claiming Exemption under Section 54 by Reinvesting the Capital Gains i.e. around Rs. 3.20 Crores in a Residential Property.
    2. Claiming Exemption under Section 54EC by Reinvesting the Capital Gains in capital gains saving bonds of NHAI and REC. However, the max exemption allowed for investing in these bonds is limited to Rs. 50 Lakhs.
    You can opt for any of these methods to save Capital Gains Tax. You can also opt for a combination of these two.

    You can also refer this detailed article on claiming Capital Gains Exemption -

    Feel free to ask in case of any further queries.
  3. Prashant Thakur

    Prashant Thakur New Member

    Sir, Thank you For reply
    I already purchase a new flat by taking loan from various person
    & i am selling this Flat (2007) after purchase of new one
    whether same investment is consider as reinvestment in new flat under capital gain ?
    also, I have to pay loan amount of 3.55 cr which i took from other person for new flat , that how should i manage accountwise ?
  4. rudrabose

    rudrabose Active Member

    If the new house is purchased less than 1 year before the sale of the old flat, then capital gains exemption is allowed in this case.

    So, if you payback the loan taken from the sale proceeds - that is allowed.

    It would be considered as a case of reinvestment.
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