Section 54F of the Act provides that if a tax payer invests the sale proceeds received from the sale of any capital asset for buying a residential property; the long-term capital gains on sale of the property would be exempt.

2) section 54F being a beneficial provision, enacted for encouraging investment in residential houses should be liberally interpreted to include investment done in the Name of son and DIL

3) the entire purchase consideration for propertywill be paid by your father you and your wife A purposive construction of the legal provisions is to be preferred as against a literal construction. Further, even if the provisions of section 54F are literally constructed, there is nothing in the section to show that the house should be purchased in the name of the tax payer only.

4) The Delhi High Court observed that section 54F does not require that the new residential property should be purchased in the name of the tax payer; it merely says that the tax payer should have purchased / constructed a ‘residential house’.

5) hence your father would be eligible for claiming exemption from long term capital gains for full amount

Your father can execute gift deed in your favour

2) you can the sell house and purchase flat in joint names with wife and claim long term capital gains exemption

The criteria for claiming exemption from applicable LTCG is that he has to invest the entire amount in the newly acquiring house property.

it may be in the joint names too, but his entire amount should have been invested besides the amount from other owners.

LTCG is exempt for an individual or HUF on sale of a residential house property, if such gains (not the whole consideration) is utilised to purchase or construct another residential house. It should be noted that the new house should be purchased within one year before or two years after the date of transfer. In case of construction, the new house should be constructed within three years from the date of transfer. Exemption will be limited to the capital gains or the cost of the new house, whichever is lower.

no follow up question

Thank you, you can revert even if you have any questions in the future.