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Rudraksha Patel   11 March 2016

Inquiry on capital gains tax

My query is regarding Capital Gains Tax. Currently i have sold a land out of which capital gains are generated. However, I want to make a house but the problem is that the plot is in the name of my wife and i am not the owner of the plot. What can i do so that i dont have to pay capital gains tax and i can construct my house. Please suggest the possible options.

 

Thanks In advance !!!!



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 5 Replies

vyasadev purohit (advocate)     26 April 2016

Sir, i am new to this forum. i got startled to learn that  your query has not been answered by any of the member as yet. 

I feel to get the relief you need to prove before the IT Dept that your wife has no independent income of her own. The relevant land even though stands recorded in her name has been actually acquired by you. Your wife needs to file an affidavit before the IT dept to that affect. why don't you have a try, Sir?      

Vyasadev Purohti, Advocate

Ms.Usha Kapoor (CEO)     25 August 2016

  • If a property is sold within three years of buying it, it is treated as a short-term capital gain. This is added to the total income and taxed according to the slab rate.
  • If a property is sold after three years from the date of purchase, the profit is treated as a long-term capital gain and is taxed at 20% after indexation .
  • If you took property on home loan, claimed the tax deduction for the principal under Section 80C and  property is sold within five years, the tax benefits will be reversed. The entire tax deduction ,for repayment of principal component of the home loan ,claimed in earlier years under section 80c , will be considered as your income (in addition to capital gains) in the year in which you sell the property. However, the housing loan interest deduction claimed under section 24(b) won’t be reversed.

Ms.Usha Kapoor (CEO)     25 August 2016

iF U PROPOSE TO BUY OR BUILD A HOUSE FO RYOUR OWN SELF OCCUPATION AND IF YOU DON'T HAVE ANY OTHER HOUSE PROPERTY YOU ARE FULLY EXEMPTED FROM TAX CAPITAL GAIN OR  OTHWERWISE. hOWEVER IF YOU WANT  TO RESELL TH EPROPERTY WITHIN 3 YEARS FROM THE DATE OF PURCHASE OR CON..STRUCTION YOU'D ATTRACT SHORT TERM CAPITAL  GAIN  TAX..

Kadem Ramesh (Advocate & Tax Consultant)     17 September 2016

mr patel

LAND IS SOLD , THAT IS IN YOUR NAME & YOUR SPOUSE BUILD THE RESIDENTAIL HOUSE IS IN HER NAME. 

AS PER INCOME TAX BOTH HUSBAND & WIFE ARE HAVING SEPERATE ENTITE BOTH ARE SEPERATE. YOU ARE GIVEN THIS AMOUNT AS A LOAN ONLY. YOU CANNOT SET OFF THIS CAPITAL GAIN AGAINST YOUR SPOUSE CONSTUCTION OF HOUSE.

Ms.Usha Kapoor (CEO)     22 September 2016

Afterall she is your better half.,  You convince her that you;d take housing loan rto construct th e house on the rland on  a joint ownership or 50:50 BASIS AND BOTH OF YOU CAN SEPERATELY CLAIM SECTION 80C AND *80EE SECTION 24 OF it ACT BENEFIT. ACCORDING TO  SECTION 24 OF it ACT YOU R INTEREST ON BANK LOAN YOU CAN CLAIM DEDUCTION UP TO rS.1.5 LAKH AND aCORDING TO SECTION 80C YOU CAN CLAIM DEDUCTION O FPRINCIPAL SUM TO THE  EXTENT OF rS.2 Lkhs. Now according to th enewly introduced section 80EE you can save  tax on an additional sum of Rs.50,000- if you fmeet the section critieria.Both of you whileremaining Joint owners can claim these benefits seperately saving  asubstantial sum  on taxes.If you appreciate this answer please click the  thank you button on this forum.


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