Taxpayer co-owning more than one home can claim benefit
ECONOMY & POLICY

Taxpayer co-owning more than one home can claim benefit

According to the Mumbai branch of the Income-tax Appellate Tribunal (ITAT), co-ownership of more than one residential property does not prevent a taxpayer from requesting a tax exemption on long- term capital gains. As investments are usually made in joint names in large families, this judgement, made within the ambit of Section 54F of the Income-tax (I-T) Act, will be advantageous to several taxpayers.

When selling capital assets (other than a home), such as jewellery or stocks, the taxpayer may be eligible for a tax exemption under Section 54F on the resulting "long-term" capital gains. There is no tax obligation if the entire net sale consideration is used to fund the purchase or building of a residential property within the allotted time frame. The tax exemption is granted proportionately when only a portion of the sale consideration is put towards real estate.

The requirement that the taxpayer not hold more than one residential property as of the date of sale of the long-term capital asset is one of the eligibility requirements outlined in Section 54F. In other words, the only home that can be possessed is the one that was built or brought into existence for the purpose of claiming the exemption.

According to the Mumbai branch of the Income-tax Appellate Tribunal (ITAT), co-ownership of more than one residential property does not prevent a taxpayer from requesting a tax exemption on long- term capital gains. As investments are usually made in joint names in large families, this judgement, made within the ambit of Section 54F of the Income-tax (I-T) Act, will be advantageous to several taxpayers. When selling capital assets (other than a home), such as jewellery or stocks, the taxpayer may be eligible for a tax exemption under Section 54F on the resulting long-term capital gains. There is no tax obligation if the entire net sale consideration is used to fund the purchase or building of a residential property within the allotted time frame. The tax exemption is granted proportionately when only a portion of the sale consideration is put towards real estate. The requirement that the taxpayer not hold more than one residential property as of the date of sale of the long-term capital asset is one of the eligibility requirements outlined in Section 54F. In other words, the only home that can be possessed is the one that was built or brought into existence for the purpose of claiming the exemption.

Next Story
Infrastructure Energy

Nawgati Partners with Seed Group to Modernise UAE Fuel Retail

Nawgati, India’s leading fuel-tech platform, has partnered with Seed Group, part of The Private Office of Sheikh Saeed bin Ahmed Al Maktoum, to transform the UAE’s fuel retail and station management sector. The tie-up will deploy digital solutions to ease congestion, improve compliance, and enhance operational efficiency across outlets. Vaibhav Kaushik, Co-founder and CEO of Nawgati, said, “This partnership with Seed Group marks a significant milestone in Nawgati’s journey as we step out of India and into global markets. With Seed Group’s regional leadership and our technology, ..

Next Story
Real Estate

Sterling Opens Sterling Hibis Vellore, Its First Resort in the City

Sterling Holiday Resorts has announced the launch of Sterling Hibis Vellore, a 40-key resort spread across 5.3 acres off Tiruvannamalai Road. This marks Sterling’s debut in Vellore and its ninth property in Tamil Nadu. Positioned as a resort-style escape within city limits, Sterling Hibis Vellore caters to pilgrims visiting Sripuram Golden Temple, families exploring Vellore Fort, medical and academic visitors to CMC and VIT, and corporates seeking retreats. Guests can also extend trips with nearby Sterling properties in Yelagiri and Tiruvannamalai. The resort features 36 Classic Ro..

Next Story
Equipment

TVS ILP’s Hosur Facility Powers Ather’s Festive Season Growth

TVS Industrial & Logistics Parks (TVS ILP) is enabling brands to meet festive season demand with Grade-A Built-To-Suit (BTS) facilities. Its Hosur park, home to Ather Energy’s largest EV manufacturing centre, has helped the company scale to a production rate of one vehicle every 0.46 seconds.  As two-wheeler EVs gain momentum, supported by rising adoption in Tier II and III cities and the upcoming GST 2.0 reform, Ather recorded the second-highest EV sales in August. To support festive peaks, TVS ILP is expanding EV charging infrastructure, optimising space at the battery unit, ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?