Dear Pankaj, My wife has got a capital gain of RS 10 lakhs and she wants to purchase the house thru bulider flat undrecostuction link plan for whi ch possession will be given in 2 to 3 yrs but payament can be made in one go right now.MY qyery is --- 1)Can she get benifit of capital gain tax ? 2)can I also put my money of Rs 20 lakh in the same property jiontly and stll she can claim exemption from capital gain.
Thkans.
I am assuming that capital gains is from asset sold only after three years of ownership.
In case capital gain has been earned from selling residential house property, then section 54 can be applied for taking tax benefit. Else section 54F would apply.
In case of section 54, if amount more than capital gains is invested into another residential house property and possession is taken within two years of sale, then no income tax is payable on gains. In case possession is not received before last date of income tax return filing (for year in which gains occurred), capital gain scheme account should be opened and gains should be deposited into same.
Check details on section 54F on earlier asked question: Income Tax on Property Sale. You may check all questions on section 54F here: Questions on section 54F
She can also buy new property in joint ownership but her value of her share in new property should be more than capital gains (in case of section 54) or sale consideration (in case of section 54F).
