Section 54F Exemption for purchase on Wife's name

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  1. QUERY ON CAPITAL GAINS FOR TAKING EXEMPTION U/S 54F OF THE INCOME TAX ACT.


    I have sold a plot in April-2014. From this property there is a capital Gains. I also own another flat in the name of my wife, who is house wife and does not have any income. This flat was purchased under subvention scheme wherein 15% amount was initially paid by me and 85% was funded by the banker to the builder and I need not to pay any Principal or Interest to the builder for 2 years (till the date of possession). The allotment letter was issued in August 2010 although there was no physical existence of the flat at the time of issue of allotment letter. Now in Dec, 2014 possession has been offered. I have utilized the sale proceeds from sale of plot for repayment of loan to banker who offered subvention scheme to the builder and intend to take exemption u/s 54F of the Income Tax Act claiming that substantial payment has been given by me to the banker and possession of the property has been offered within 1 year from the date of sale of flat. Therefore, provisions of sec 54F for claiming tax exemption should be applicable.


    Please give your expert opinion on the above transaction.


    Thanks & Regards,



    P S Johar

    [email protected]

    09915703165
     
  2. Neha Sharma

    Neha Sharma Active Member

    The property sold was in your name and the new property purchased is in the name of your wife.

    As the property is not in your name, therefore Capital Gains Exemption will not be allowed.
     
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