Sir
We sold a property 1st Oct 2013 which was on joint name of husband & wife for 3 cr. out of which capital gain came as 1.7 cr.( Husband share 1.12 & wifes 58 laks.) which was invested in one Flat & one bunglow (at separate places) before purchasing these properties we had on res flat on combined name.
our question is how many properties can be purchased on combined name? as our CA had told we can have four properties on combined name ( two each)
please advice.
thanks
Mukhtar Ahmed
2 Answers
Dear Mukhtar,
One can hold/invest in as many properties as one would like to..
Are you referring to w.r.t Long term capital gains?
Kindly read:
http://www.relakhs.com/how-to-save-capital-gains-tax-on-sale-of-land-house-property/
Hi,
Let's continue the Q&As in the same thread.
"Your reply was;
Sir
Thanks for the answer.
Presently we are facing the scrutiny by ITO. They are refusing to accept our capital gain reinvestment in two different properties at two different places on combined name saying we had one flat on joint name previous to this investment & one cannot buy more than two properties for LTCG even in combined name. (We would have opted for buying two properties each instead.) So we are compelled to pay CGtax on third property.
Please advice
" Yes, to claim tax exemption on LTCG proceeds then there are certain conditions. You must also remember that you are allowed to purchase or construct only one new asset from the capital gain that accrues. This means that you cannot make multiple property acquisitions and thus seek to reduce your tax outgo. However, if you sell more than one property, you can invest the resulting cumulative capital gain amount in a single new property.
Thanks for the answer.
Presently we are facing the scrutiny by ITO. They are refusing to accept our capital gain reinvestment in two different properties at two different places on combined name saying we had one flat on joint name previous to this investment & one cannot buy more than two properties for LTCG even in combined name. (We would have opted for buying two properties each instead.) So we are compelled to pay CGtax on third property.
Please advice
" Yes, to claim tax exemption on LTCG proceeds then there are certain conditions. You must also remember that you are allowed to purchase or construct only one new asset from the capital gain that accrues. This means that you cannot make multiple property acquisitions and thus seek to reduce your tax outgo. However, if you sell more than one property, you can invest the resulting cumulative capital gain amount in a single new property.
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