Help regarding claiming Capital Gain Exemption

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  1. sanjeevtalwar

    sanjeevtalwar New Member

    I bought a plot in 2007 for 12 lacs and paid rs.5 lacs for its registration in2012. The plot was sold for Rs.1.42 crores in November, 2014. Now I intend purchasing a plot for Rs.2.40 Crores jointly with my sister and brother's wife and want to construct that as three residential units for three of us. My brother's wife sold an industrial property and put that money in capital gain account. Now she is utilising that money in purchasing the above plot jointly with me.

    My questions are

    1. Will I get capital gain exemption for putting the entire sale consideration of the earlier plot sold in this new plot which will be in joint name.

    2. Will my brother's wife gets exemption in putting the entire sale consideration of the industrial plot she sold by investing in the new plot jointly with me
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    Dear Sanjeev
    1. If you reinvest the entire sale proceeds - you will get the capital gains exemption under Section 54F
    2. Your brothers wife will also get the exemption under Section 54F
     
  3. sanjeevtalwar

    sanjeevtalwar New Member

    THANKS GAURAV FOR THE REPLY. I HAVE ONE MORE QUESTION.

    1. SUPPOSE ONE PERSON OUT OF THE THREE WISHES TO GIFT SOME PORTION OF HIS/HER HOLDING TO THE OTHER BEFORE THREE YEARS, WILL THIS BE TAXED UNDER CAPITAL GAIN/GIFT TAX, IF YES, AT WHO'S HANDS?

    2. DO YOU HAVE TO CONSTRUCT A HOUSE ON THE PLOT WITHIN THREE YEARS TO MAKE IT A RESIDENTIAL PROPERTY FOR THE PURPOSE OF CAPITAL GAIN
     
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    Yes, you will have to make a house on this plot for this to be considered as a Residential House.
     
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