Exemption - Long term capital gain

[Guest]

assessee sold house property for rs 25lacs and earned long term capital gain of rs 14 lacs and invested rs 16 lacs in new house property in the name of his wife .in his books of accounts he showed this investmentas purchaseof new house. Whether this investment qualifyfor exemption of long term capital gain.

AI Summary

Investing Long-Term Gains in Spouse's Name Qualifies for Tax Exemption Under Section 54, Amidst Mixed Court Rulings. An individual sought advice on whether investing long-term capital gains from selling a house into a new property registered in his wife's name qualifies for a tax exemption under section 54. A respondent affirmed that the exemption applies as there is no requirement for the new house to be in the assessee's name. Another contributor agreed, noting the Benami Transaction Act allows such transactions between spouses. A further reply highlighted differing court rulings, with the Bombay High Court denying exemptions for legal heirs under section 54F, while the Andhra Pradesh High Court granted them under section 54.