SELLING SINGLE HOUSE PROPERTY AND BUYING TWO HOUSE PROPERTIES

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Dear Sir,

Kindly enlighten me whether I can buy two house properties in the joint names of self and my son or daughter (former or survivor) from the sale proceeds of single house property held by me, one from LTCG component and another from the residual(remaining) amount of the sale proceeds, without paying any income tax? If not, please guide me as to how I should go ahead with a view to ensuring that the benefits could be passed on to my son and daughter without any income tax implication either to me or my children in the event of my death

house-property long-term-gains section-54 income-tax
1 Answers

To save income tax fully on long term gain u/s 54, share in one of your newly bought house property cost should be more than long term gains earned from sale of property.

Say selling price of property = X Long term gains on this = Y New properties cost = P, Q

Say if your investment share in any of the new properties is more than Y, then there won't be any income tax payable. Rest of the amount (X-Y) can be used anywhere without any issue.

Pankaj Batra5212
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