Capital Gains on House

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  1. poddarnirmal

    poddarnirmal New Member

    I have one house (purchased 5 years earlier) with first name being self and 2nd name being of Wife. I want to sell this house and purchase a new one.

    The value of the new house is more than the sale price of the old one.

    Q1) Is there a limit on Capital gain which is exempt from Income tax on this reinvestment? One person advised me that there is a limit of 50L and if this is correct does it apply separately to myself and wife i.e. 50L x2 = 100L

    Q2) To make up the shortfall in the money for the purchase of the new house, my father is willing to sell his house (purchased 30 years earlier) and contribute to the purchase of the new house. Can he too avail of the Income tax exemption since the capital gain is being utilized for purchase of new house?

    In short, two houses will be sold, one held jointly by myself and Wife and second held by my father to Purchase a single larger house.
  2. ZED

    ZED Well-Known Member

    If you buy one residential house in India by selling one residential house , then this means you are claiming exemption u/s 54.
    The limit of 50 Lacs is in S.54EC.

    Yes, he can but I strongly advice that he be a co-owner in this *new house* along with you and your wife.
    V K Khanna likes this.
  3. Mohd. Masood

    Mohd. Masood New Member

  4. Mohd. Masood

    Mohd. Masood New Member

    Ans-1 dear sir, as your problem is based on Long Term Capital Gain, As per Income tax act there is a lots of Exemption for Long term Capital Gain Under Section 54 series with some conditions as your case you should disclosed, Number of Houses you have at the time of sale of this house property , date of sale this house, Amount of Sale And Date of Purchase, then after that whole picture clear regarding maximum limits available for this LTCG
    a) further your wife name was mention that not mean you can get 50L*2=100L exemption

    2) if you take loan for the purchase of house for shortfall amount than you can get the advances of Section 80c and Section 24B (under house property head ) exemption. which is better
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