Question And Answer | |
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Subject: | Whether the purchase of property belong to husband by the wife is eligible to exemption u/s 54F of the Act ? |
Category: | Income-Tax |
Querist: | MANPREET AHUJA |
Answered by: | Advocate Neelam Jadhav |
Tags: | Capital Gains, husbands property |
Date: | May 15, 2021 |
THE WIFE EARNED LONG TERM CAPITAL GAIN ON SHARES.
WHETHER SHE CAN PURCHASE HUSBAND HOUSE(EXCLUSIVE IN HIS NAME) TO AVIL THE BENEFITS OF ADJUSTMENT U/S 54F AGAINST LTCG.
Yes! If the wife has earned long term capital gain on sale of shares and same is invested in purchase of property which is in the name of the Husband and purchase consideration for property is paid by the wife from the sale proceeds of shares, she is eligible to claim benefit u/s.54F, subject to other conditions are satisfied as per the section . In Anil Dev v. Dy. CIT (2020) 185 ITD 418 (Bang)(Trib.) held that purchase consideration of residential property is paid by wife out of the joint/her individual bank account and she was having sufficient own funds in that joint bank account received as her share in sale proceeds of the shares and this claim is accepted.