HUF |
HUF, Family Settlement and Others
Question 1 (exemptions) (CG ID 22)
V, an individual, owned three residential houses which were let out. Besides, he and his four brothers co-owned a residential house in equal shares. He sold one residential house owned by him during the previous year. Within a month from the date of such sale, the four brothers executed a release deed in respect to their shares in the co-owned residential house in favour of V for a monetary consideration. V utilized the entire long-term capital gain arising out of the sale of the residential house for payment of the said consideration to his four brothers. V is not using the house, in respect of which his brothers executed a release deed, for his own residential purposes, but has let it out to another person, who is using it for his residential purposes. Is V eligible for exemption under section 54 of the Income-tax Act, 1961 in respect of the long-term capital gain arising from the sale of his residential house, which he utilized for acquiring the shares of his brothers in the co-owned residential house ? Will the ownership of two more houses by him or the date of sale of the residential house and non-use of the new house for his own residential purposes disentitle him to exemption ?
Question 2 (exemptions) (CG ID 25)
R is a member of a Hindu undivided family which owned a house for the purpose of residence. There was a partial partition of the family and instead of selling property to an outsider, the property was allotted to R for a consideration of Rs. 5 lakhs. Release deeds were accordingly executed in favour of R by the other members of the family. R had also his individual property which he sold during the same previous year, thereby making a capital gain of Rs. 5 lakhs, which he wants to set off against the consideration fixed for the family property. Discuss the impact of these arrangements on the assessments of the family and R.
Question 3 (exemptions) (CG ID 62)
Mr. A who transfers land and building on 02.01.PY, furnishes the following information:
Net consideration received Rs. 100 lakhs. Value adopted by stamp valuation authority, which was not contested by Mr. A Rs. 120 lakhs. Value ascertained by Valuation officer on reference by the Assessing officer Rs. 130 lakhs.
This land was distributed to Mr. A on the partial partition of his HUF on 1.4.2001 Fair market value of the land as on 1.4.2001 was Rs. 1,10,000. A residential building was constructed on the above land by Mr. A at a cost of Rs. 3,20,000 (construction completed on 01.12.2007).
Short-term capital loss incurred on sale of shares during 2 years preceding the PY Rs. 2,05,000.
Mr. A seeks your advice as to the amount to be invested in NHAI bonds so as to be exempt from clutches of capital gain tax.
Question 14 (exemptions) (CG ID 37)
In the year, Mr. X has sold immovable property and has earned a long term capital gain amounting to Rs. 5 lacs, which he has already invested in the investments specified under section 54EC for claiming exemption from long term capital gains tax on such transaction. On the other hand he has also sold another property in which he has incurred a long term capital loss of Rs. 5 lacs. Mr. X proposes to claim exemption under section 54EC and carry forward the capital loss for the set off in the subsequent years. Is the contention of the Mr. X correct ?