1) out of sale proceeds you can purchase property in joint names with your son

2) 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

3) 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’.

4) 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.

5)your son can take bank loan for purchase of property

you can invest sale proceed of an immovable property either severely or jointly with other person. you have to show that sale proceed is invested within prescribed period (1 year or 3 year depending upon case) in another immovable property. you are eligible for loan because this is a fresh investment.

capital gain tax cannot affect investment and capability or eligibility for loan because capital fain is a tax levied upon net gain from investment of immovable property. whether it is applicable or not shall be decided by the IT department in light of ITR filed by you. bank cannot compel your to take any certificate from IT department.

The investment of the capital gains out of the sale consideration amount can be invested in your son's property also and yo can also become a joint owner in this.

Special Bench of the Mumbai Tribunal, in the case of ITO vs Suseela M Jhaveri 26 (ITAT Bom). held that if the assessee has purchased more than one residential house and the houses are in different locations, then, the assessee could claim exemption only in respect of one house.

A new residential house property must be purchased or constructed to claim the exemption

The new residential property must be purchased either 1 year before the sale or 2 years after the sale of the property/asset.

Or the new residential house property must be constructed within 3 years of sale of the property/asset

If you are not able to invest the specified amount in the manner stated above before the date of tax filing or 1 year from the date of sale, whichever is earlier, deposit the specified amount in a public sector bank (or other banks as per the Capital Gains Account Scheme, 1988).

Only ONE house property can be purchased or constructed.

Starting FY 2014-15 it is mandatory that this new residential property must be situated in India. The exemption shall not be available for properties bought or constructed outside India to claim this exemption.

Yes there is no legal impediment in investing the capital gain in some other property.

Regards