Property sold in name of Wife but purchased in name of Son

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    TANISHKA New Member

    My query is : Residential property was jointly held by husband and wife. Now they sold the property and purchased the new one. But the new property was held in the name of husband and son. Both have contributed for the new property. Now I wanted to confirm that as the wife is not part of new agreement.Hence capital gain is taxable in the hands of wife and as the new property is in the name of both husband and son exemption u/s 54 would be int he % of amount invested in the new property.
    As the whole amount of capital gain is invested in the new property can husband take full exemption in his return.
  2. Karan Batra

    Karan Batra Well-Known Member

    The husband can claim exemption under Section 54 only for his share of cap gains of the old property.

    The wife would be liable to pay tax on her share of the capital gain.

    TANISHKA New Member

    Thank you very much for your instant reply. As all the loan installment was paid by husband can we say the share as 90% and 10% and can husband take full exemption of (90%) irrespective of the fact that he has jointly held the property with his son.
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