Can a residential property be purchased by 3 members of the family in equal ratio, if yes, will any liability arise for Income Tax & Wealth Tax purpose if they own residential property in their individual names and they sell off their residential property within a year of purchase? i.e. all Individuals own residential property in their own name and now they want to own, one combine big residential property in equal ratio and they would sell off their residential property within a year. desaiashit2000@……………….in
Yes they can ,They can avail the exemption u/s 54 if all of them have joint and fixed ownership of the property. Section 54 which gives exemption shall be applicable according to their expenditure in the new house property . Read the Section 54 carefully and take full benefit out of it
About taxworry
The assessee had long term capital gain in the asstt. Year 2001-2002 of Rs.136774/- and he deposit the same in Capital Gain Deposit Account for exemption U/Sec 54. But after 3 year that amount was unutilised. In that case Asstt. Year 2005-06 it will be taxable as long term capital gain. but assessee wasnt pay the tax not his return will not show LTCG. Now asstt. 2010-11 want to settled that case and withdraw that money.
Que:- What step should be taken and what the consequence on that action.
Please suggest as soon as possible