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kishorchandra p mehta (Ex Chief Executive Officer)     24 December 2023

Can one buy property in other's from sale proceed of existing property

Sir, If I sale my flat and from sale proceeds, can I purchase new flat in the name of spouse.



Quick Summary
This discussion clarifies whether you can purchase a new property in your spouse's name using the proceeds from selling your own flat. While you can indeed sell your property and buy another in your spouse's name, it's important to note that for Capital Gains tax exemptions under Section 54 of the Income Tax Act, the new residential property must be purchased in the name of the original seller.

 2 Replies

kavksatyanarayana (subregistrar/supdt.(retired))     24 December 2023

Yes.  It is your flat you can sell it and you can buy another property in the name of your spouse.

T. Kalaiselvan, Advocate (Advocate)     24 December 2023

Under Section 54 the IncomeTax Act, an individual or HUF selling a residential property can avail tax exemptions from Capital Gains if the capital gains are invested in purchase or construction of residential property. 
 

  • The property must only be bought on the name of the seller and not on anybody else’s name.
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