Benefit of section 54 under I T Act

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.

asked Jun 26 '11 at 16:19 by nkjain 1111

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.

answered Jun 27 '11 at 15:17 by Pankaj Batra 5.2k320


Know someone who can answer? Share a link to this question via Email, Twitter, or Facebook

Your answer
toggle preview

Follow this question

Once you sign in you will be able to subscribe for any updates here

Markdown Basics

  • *italic* or __italic__
  • **bold** or __bold__
  • link:[text]( "title")
  • image?![alt text](/path/img.jpg "title")
  • numbered list: 1. Foo 2. Bar
  • to add a line break simply add two spaces to where you would like the new line to be.
  • basic HTML tags are also supported



Asked: Jun 26 '11 at 16:19

Seen: 3,196 times

Last updated: Jun 27 '11 at 15:17