In case of joint holders (all individuals) of a residential house, how is long term capital gain on sale of the residential house for each of them is determined and can each one of them avail the benefit of section 54 by investing his share of capital gain in separate residential house for himself?. It will then mean purchase of more than one house against sale of one jointly held property.
1 Answers
Income tax liability on long term capital gains in case of joint properties, will be computed individually.
Each will have his/her own gains (calculated by dividing gain into property share ratio) and income tax benefit can be availed by buying a new property.
Each of the holder can buy a separate property for him/herself.
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