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Apr 09, 2024
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ITAT: Joint-ownership in existing flat will not bar tax benefit on investments in another house
It is quite common to include the name of a spouse in the ownership of a flat. A recent decision of the Mumbai-bench of the Income-tax Appellate Tribunal (ITAT) will prove useful to many. The ITAT has held that such joint-ownership will not impact the spouse’s eligibility to claim tax benefits under section 54-F of the Income-tax (I-T) Act, relating to long-term capital gains, when he/she sells another asset (say land, shares etc) and reinvests the sale proceeds in another flat.
When a taxpayer earns long-term capital gains from sale of any asset (other than a house property), the tax arising on the gains can be saved by investing the net sale proceeds in a residential property.
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