Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Income Tax - Highlights / Catch Notes

Home Highlights November 2024 Year 2024 This

Legal interpretation of the term "original asset" for claiming ...


Original asset co-owned by assessee and wife; sale proceeds invested in new property qualify for tax exemption u/s 54F.

Case Laws     Income Tax

November 11, 2024

Legal interpretation of the term "original asset" for claiming exemption u/s 54F of the Income Tax Act. It discusses the ownership rights over the "original asset" by the assessee and his wife, and their entitlement to claim exemption based on the sale proceeds invested in a new property. The key points are: the "original asset" was jointly owned by the assessee and his wife, giving them equal ownership rights; the term "property" encompasses valuable rights and interests; both the assessee and his wife are beneficial owners and liable for taxation on the income from the property; the assessee invested the sale proceeds from the "original asset" in a new property co-owned with his son, fulfilling the criteria for exemption u/s 54F; the exemption is applicable based on judicial precedents, and the income should be computed considering the assessee's share of ownership and investment in the new property.

View Source

 


 

You may also like:

  1. Applicability of Section 64(1) and Section 54F of the Income Tax Act. Section 64(1) allows for the inclusion of a dependent spouse's income in the assessee's taxable...

  2. Deduction u/s 54F is not available to an assessee who owns more than one house property at the time of purchasing a new property. The assessee, despite jointly...

  3. The assessee claimed exemption/deduction u/s 54F on account of investing long-term capital gains in a new residential house. The PCIT disallowed the claim, considering...

  4. Recovery of tax dues - Right of auction purchaser of the property - Since the petitioner had purchased in the auction sale conducted by the bank under the provisions of...

  5. Clubbing of income u/s 64 - Additions of Sale proceeds of the land belonging to the assessee’s wife claimed to be credited to the assessee’s bank account - Wife has no...

  6. Unexplained investment u/s 69 - family transaction - assessee has submitted that the assessee’s husband was a power of attorney holder of the property and could not...

  7. The tribunal held that for quantification of deduction u/s 54F of the Income Tax Act, the actual sale consideration received or accruing from transfer of the original...

  8. Eligibility to exemption u/s.54F - Although the failure of the assessee to deposit the sale proceeds in a Capital Gains Account Scheme, 1988 for intervening period was...

  9. Recovery of sales tax dues - encumbered property or not - liability of auction purchasers - this is a clear case in which the Sales Tax Department had a charge on the...

  10. Clubbing of income - salary paid to the assessee’s wife - the payment made by the assessee to his wife would not qualify for the benefit of proviso to Section 64 (1)(ii) - HC

  11. Exemption u/s 54B - LTCG was invested in the purchase of another agricultural land in the name of his wife - The term “assessee” is qualified by the expression...

  12. Capital gain in respect of sale of only one property - addition u/s 50C - assessee itself had leasehold rights in the said property and hence in instant facts, the...

  13. Sale of property - Property belongs to the HUF of the assessee Or assessee individual - rights on ancestral property - the property was inherited by the father of the...

  14. Assessee utilized long-term capital gain from sale of immovable property for purchase of new residential property within permissible time period. Purchase consideration...

  15. Disallowance u/s 54F - Investment of Sale consideration for claiming exemption on LTCG - Advance was given for purchase of new residential property but the transaction...

 

Quick Updates:Latest Updates