Sign in with Facebook
Sign in with Facebook

User Rating: 5 / 5

Star ActiveStar ActiveStar ActiveStar ActiveStar Active

The Mumbai Income tax Tribunal has ruled that if someone ahs entirely invested in a property, then the person is eligible for geftting full incomr tax benefit on investment even if the property has been purchased in a close relative's name.

Currently, the law requires that when a property is sold after being held for more than 3 years then the seller needs to pay long term capital gain tax (LCTG) on it or claim it exempt by investing an amount equal to capital gain in purchase of another residential house. The law allows the seller to reinvest the gain amount within stipulated time irrespective of who owned the property.

In a recent case, a businessman had invested in a property alone but the property had been registered in the name of the person and his wife. When selling the property after 24 months, the assessee reinvested the LCTG in another house. The owner tried to claim exemption for the whole amount of LTCG. Instead of that. the IT department allowed him only 50% exemption. When the assessee again mentioned that he needed 100% exemption, the tax department refused. When the business moved the case to court, the tribunal allowed him 100% exemption since the investment for the property was done solely by the assessee.

Add comment

Security code

Want quick reply to your question? Post it to the Forum and get quick and prioritized reply! For questions on posting to forum, please read article on how to post a question in the forum.

Latest News

Residential demand unlikely to improve in 12-18 mo...
22 Oct 2017 09:27 - Krishna

Even though the number of affordavle housing projects are joing up in the recent times, the demand f [ ... ]

Affordable Housing may be next big thing
30 Jul 2017 07:52 - Krishna

Thanks to the govenrment's effort to lead to affordable housing, housing loans and sales in this cat [ ... ]

RERA deadline up on July 31st
30 Jul 2017 07:38 - Krishna

Builders are worried about the deadline to sign up for Real Estate Regulatory Authority (RERA). Any  [ ... ]

Documents uploaded on real estate sites cannot be ...
30 Jul 2017 07:04 - Krishna

Developers will now have to be careful when uploading documents with the Real Estate Regulatory Auth [ ... ]

Demonetization has not affected prices of properti...
23 Jul 2017 10:47 - Krishna

Recent studies show that in the first quarter of 2017, prices of under construction properties in De [ ... ]

Featured News

You can take five years to make use of interest ra...
04 Mar 2016 10:22 - Krishna

A home owner will be able to take tax exemption on home loan even if the house construction gets com [ ... ]

Subscribe to News

Sign in with Facebook