1. My father is selling the land in Delhi and buying an apartment in Noida. He has some money from the capital gain of old property sale and will be investing the same in new property.
Say, we have a capital gain of 40 lac and value of the new property is 60 lac.
Can he make me co-owner of new property and have tax rebate of capital gain i.e. 40 lac?
Can he make me the full owner of the new property by paying 40 lac as capital gain and me paying rest 20 lac?
To avail the capital gains tax exemption he has to invest the entire money in the new hose property to be bought on his name or purchase jointly with you.You cannot become an absolute owner while your father invests the amount availing exemption under LTCG.
2. My father is gifting land to me and I am selling that land, thus the capital gain of 40 lac would be in my name. I buy new property and make my wife as co-owner.
Can my wife be co-owner, if she does not put any money?
Can my wife be co-owner, if she invests some money and still I get capital gain tax rebate?
Note --> My wife, already has a flat on her name and I am the payer of that flat (loan in my name).
The Income Tax Act has laid out exemptions under Section 54 and Section 54F to help taxpayers save tax on capital gains.
Exemption under Section 54 is available on long-term Capital Gain on sale of a House Property.
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
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.
This exemption will be reversed if you sell this new property within 3 years of purchase and capital gains from sale of the new property will be taxed as short-term capital gains
Some more queries, but not related to capital gain are as given below.
1. Can the seller make a sale deed now, say for 70 lac and I pay only 60 lac as of now and pay 10 lac after 1 month?
If the seller would agree to take the balance money at a letter time when you may give it , there should not any problem to this effect.
2. What are the stamp duty charges of Noida for property registration?
It may be enquired locally as the same differs from one state to another