X INCURRED CAPITAL GAIN FOR 1 CR BY SALE OF HOUSE PROPERTY. X IN PROPER TIME INVESTED IN NEW PROPERTY 1.25CR. HOWEVER OUT OF 1.25 CR HE INVESTED 50 LACS SELF AND BALANCE 75 LACS THRU BANK LOAN IN NAME OF X HIS WIFE AND TWO MAJOR SONS.HIS INVESTED SELF MONEY IN HIS BUSINESS.
WHETHER EXEMPTION IS AVAILABLE TO X U/S 54 FOR PURCHASE OF NEW PROPERTY AND TO WHAT EXTENT. FURTHER HERE IT IS IMPORTANT TO NOTE THAT AS HOUSING LOAN STANDS IN NAME OF X AND 3 OTHER FAMILY MEMBERS , ALL ARE MAKING REPAYMENT AND TAKING BENEFIT OF ITR IN THEIR RESPECTIVE RETURNS. NO INVESTMENT HAS BEEN MADE BY OTHER THREE IN PURCHASE OF NEW HOUSE PROPERTY EXCEPT MADE BY X...
Capital Gains Exemption Query: Can X Claim Section 54 Benefits Despite Shared Loan for New Property Purchase? X incurred a capital gain of 1 crore from selling a house and invested 1.25 crore in a new property. X personally contributed 50 lakhs, while the remaining 75 lakhs came from a bank loan in the names of X, X's wife, and two major sons. X used his personal funds for business investment. The query seeks to determine if X qualifies for exemption under Section 54 for the new property purchase and to what extent, considering the loan is in multiple names and repayments are made by all parties, yet no additional investment was made by the other family members. (AI Summary)
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