Case Law Details
Case Name : Shri Jitendra V Faria Vs. ITO (ITAT Mumbai)
Related Assessment Year : 2010-11
Courts :
All ITAT ITAT Mumbai
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Assessee was entitled to full exemption u/s. 54 when the full amount was invested by the assessee even though the property was purchased in the joint names of the assessee and his brother.
1. Assessee was the owner of a flat in Jai Mahavir Apartment, J. P. Road at Andheri (West) jointly with his wife Mrs. Manisha J. Faria. The said flat was sold for Rs. 1,02,55,000/-. The assessee computed long term capital gains at Rs. 43,01,665/- being 50% share in the property. The assessee invested Rs. 42,01,665/- in another residential property i.e., flat in “Parag” situated on J. P. Road, And...
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a) My father is planning to sell a piece of land (which is purchased for INR 10,000 in 1989) for 44Lakhs now and share the money between me & my brother. Can we both as legal heirs pay the CGT or try alternatives to get an exemption? or is that our father only has to do this?
b) I purchased a flat (in 2012 and residing in it) and a land (in 2014) while my brother purchased a flat (in 2017 and residing in it). Can we repay our home loans and get exemption for Capital gains tax? or Is my brother only eligible (as he purchased his flat this year*) for clearing his home loan with his share?
*as per section54F,”……within a period of 1 year before or 2 years after the date on which the transfer took place”
c) If I build another house in my vacant plot before 3 years or buy another new apartment flat* within 2 years with my share of amount, will I get exemption?
*as per section54F,…..provided that nothing contained in this sub-section shall apply where the assessee owns on the date of the transfer of the original asset, or purchases, any residential house, the income from which is chargeable under the head “Income from house property”, other than the new asset.
IE “the exemption is available for one residential house that is purchased by the assessee” mean that the assessee can get CGT waived when purchasing only 1 house with the same amount or
is it has to do anything with the previous assets (houses) he has?
Points d & e in your article –
cleartax.in/s/capital-gains-exemption-on-sale-of-land
d) If purchasing a new house is not an option for us, can we both individually invest in NHAI/REC bonds and get excemption after 3 years? or is it that only our father has to do this and give us the bonds instead? Also the bonds to be purchased are for the actual ‘tax’ amount which is 8.76L in our case? or the entire amount 44L?