Capital gains
R.V.RAO
(Querist) 14 November 2011
This query is : Resolved
A PERSON(senior citizen ,IT assessee) HAS TWO HOUSE PROPERTIES.
AT THE TIME OF PURCHASE- -IN THE CASE OF ONE HOUSE PROPERTY, HIS MAJOR SON AND THE PERSON ARE SHOWN AS JOINT BUYERS RESPECTIVELY IN THE SAME ORDER WHEN THE PROPERTY WAS REGISTERED .
IN THE CASE OF THE SECOND HOUSE PROPERTY,THE PERSON AND HIS WIFE ARE SHOWN AS JOINT BUYERS RESPECTIVELY IN THE SAME ORDER, WHILE REGISTERING THE PROPERTY PURCHASED
1.) NOW MY QUESTION IS WHEN THIS PERSON SELLS THESE TWO PROPERTIES AND BUYS TWO MORE PROPERTIES , TO TAKE ADVANTAGE OF CAPITAL GAINS TAX EXEMPTION ,
IS IT REQUIRED THAT THE NAMES OF BOTH SHOULD APPEAR IN THE NEW PROPERTY REGISTARTION DOCUMENTS
OR THE FIRST NAME ( APPEARING IN THE PROPERTY DOCUMENTS WHEN REGD.) SHOULD APPEAR
OR ANY ONE NAME IS SUFFICIENT.
2.) NEXT QUERY ON THE ABOVE ISSUE,IS
THAT THE MAJOR DAUGHTER AND MAJOR SON OF THE SAME PERSON , TOOK HOUSE LOANS TO BUY TWO NEW PROPERTIES . SALE AGREEMENTS ENTERED AND 50% SALE VALUE PAID THROUGH BANK LOANS BY DAUGHTER AND SON RESPECTIVELY.
THE FATHER WANTS TO USE FULL SALE PROCEEDS OF HIS ABOVE EXISTING TWO HOUSES ( WHICH HE IS SELLING) IN THESE TWO NEW PROPERTIES.(IN THE FORM OF REPAY BANK LOANS TAKEN BY THE DAUGHTER AND SON FOR PURCHASE OF THE NEW HOUSES---- BANK LOANS ARE IN THE NAME OF SON AND DAUGHTER ONLY FOR THE TWO NEW HOUSE PROPERTIES RESPECTIVELY--),
BANK SHALL RETAN BORROWER’S NAMES ( THE DAUGHTER AND SON BEING THE BORROWERS) ON THE NEW (FINANCED) PROPERTIES REGN. DOCUMENTS .
AGAIN MY QUESTION IS IN WHAT ORDER THE NAMES SHOULD APPEAR WHILE REGISTERING THE TWO NEW HOUSE PROPERTY DOCUMENTS TO AVAIL CAPITAL GAINS EXEMPTION BY THE PERSON CONCERNED,HIS SON AND HIS WIFE WHO ARE ALSO JOINT OWNERS IN THE TWO EXISTING PROPERTIES?
SINCE THE BANK MAY INSIST BORROWER’S ( THE DAUGHTER AND THE SON), NAMES TO BE SHOWN FIRST IN THE NEW PROPERTY DOCUMENT, (AT THE TIME OF PROPERTY REGISTRATION)S,
HOW THE ORIGINAL OWNERS (SON AND FATHER IN CASE OF ONE HOUSE AND THE PERSON AND HIS WIFE IN THE SECOND CASE ) .
NOTE: it is clear that if the new properties are debt free, there is no problem on the order as to whose names appear first or second since banks have no say.
THE WHOLE ISSUE IS TO AVAIL CAPITAL GAINS EXEMPTION AND HENCE THE ORDER OF PRIORITY IN SHOWING NAMES IN THE NEW PROPERTY REGN. DOCUMENTS.
THANKS AND REGARDS,
R.V.RAO
raovr2001@yahoo.com
Raj Kumar Makkad
(Expert) 07 January 2012
Your problem requires person attention so better to engage a lawyer specifically.
