Long term capital gain exemption u/s 54 of I.T.Act

[SANJAY BAHETI]

Dear Experts,

One of My client being an Individual Lady has purchased a Residential House property (i.e. Tenament) in her name in the Year 2005. Now She wants to sell/dispose the said House in the Current F.Y. & whatever the long perm capital gain arises therefrom is likely to be fully utilized towards purchase of New Residential Bungalow in joint name with her husband.

Now query is whether she can claim the said long term capital gain as exempted u/s 54 of IT Act even though the new house property will be in joint name with her husband by investing equally amount either fully or proportionately. 

AI Summary

Woman Eligible for Long-Term Capital Gain Exemption Under Section 54 for Joint Property Purchase with Husband An individual is seeking advice on whether a client, a woman who purchased a residential property in 2005, can claim a long-term capital gain exemption under Section 54 of the Income Tax Act. She plans to sell the property and use the gains to buy a new residential bungalow jointly with her husband. The response confirms that she can claim the exemption, provided the capital gain amount is fully invested in the new property, even if it is purchased jointly.