Capital gains tax

gurinder singh (Querist) 17 December 2020 This query is : Resolved
My mom is 82years old. She sold a residential property just now.
Can she buy new residential property in my name or my son's name and still get the benifit of capital tax exemption.

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An 82-year-old individual sold a residential property and is enquiring about capital gains tax exemption if they purchase a new property in their son's or grandson's name. The consensus is that the exemption applies when the individual reinvests the sale proceeds into a new residential property within a specific timeframe, not when purchasing in another person's name directly. However, recent rulings suggest potential avenues for relief, and it's advised to purchase in her own name and then gift or will the property to the desired beneficiary.

Isaac Gabriel (Expert) 17 December 2020
She can purchase and gift it to her son to get tax exemption.

Rajendra K Goyal (Expert) 17 December 2020
She should purchase in her name and gift / will in favor of person she want.

K Rajasekharan (Expert) 18 December 2020
Capital gains tax exemption is applicable to a person who sells his residential house and acquires another residential house from the sale proceeds, within a period of two years after the date of transfer of old house, or constructs a residential house within a period of three years from the date of transfer of the old house

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Rajendra K Goyal (Expert) 18 December 2020
Fully agree with the advice from expert K. Rajasekharan, you or your son are different assesses under Income Tax.

gurinder singh (Querist) 18 December 2020
Recently ITAT ruled in favour of an old age assessee in such case. It was in newspapers.

Dr J C Vashista (Expert) 19 December 2020
I fully agree and appreciate opinion and advise of experts Mr. K Rajasekharan and Mr. Rajendra K Goyal.
She will not be taxed for capital gains within 2 years of purchase of the consideration received.

Rajendra K Goyal (Expert) 19 December 2020
Author may give the reference of the referred orders to know the details.

P. Venu (Expert) 24 December 2020
Are you the only child of your mother?

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