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Question

Hi I have a doubt regarding Income Tax Capital Gain If Mr A and his wife Mrs A have purchased a flat for Rs 2300000 and then sold it for Rs 4000000 after few years and used the proceeds to purchase another house Rs 6000000 in the name of their son Mr B( son )and Mrs A (mother of Mr B wife of Mr A) then what are the tax implications will Mr A be charged for capital gain and should Mrs A still file income tax return to get exemption even though she has no other income. Is there any case law to support this.

Aa · Answer

Mrs A will get exemption under sec 54 to the extent she acquired new house property

Harsh · Answer

According to sec 54 Exemption shall be allowed to a person who sell and acquired a house In this case MR. B is relative person as per definition of relative person so that exemption shall be allowed to MR A and Mrs B And C. GAIN ALSO CHARGED TO BOTH MR. A AND MRS. A AS PER MY OPINION ANOTHER LOTS OF SUBJECT DECISION

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2 answers

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