ITR -LIASSING: Can you buy two properties for residential homes to claim exemption on LTGC when selling one home? | Mint

Can I buy two properties for residential homes to claim exemption from long -term capital gains from the sale of one home? Can I buy two home properties in the joint names of self and other family members to claim an exemption for long -term capital gains from the sale of one property house held by me for 20 years? I will buy one home 1-2 months before the sale in the names of myself, for my son and another within two years after the date of sale, in the names of myself and my daughter using the full returns of the sale. If not, please guide me on how to ensure that the home can be passed on to my son and daughter without any implication in income tax in the event of my death? Note that in order to utilize the tax exemption under Article 54 for long -term capital gains from the sale of a dwelling, individuals or a HUF only invest the long -term capital gain and not the sales consideration. Since the benefit of indexing is no longer available to claim exemption, you will need to invest the real difference between its selling price and its cost price. Although the law requires investments in one property in India to be made in one residence, but there is a one -time exception where you can invest the capital gains arising from the sale of one dwelling in two separate homes, provided the amount of capital gains in the long run does not exceed Rs. 2 crores. If you have not used this opportunity in the past to use this one -time opportunity, you can use exemption from long -term capital gains by investing in two properties in the residential homes. The residential home can be purchased within two years after the sale of the house. The exemption is still available if a residence is purchased within one year before the sale of the household home. The amount not used by the expiry date of the submission of the ITR must be deposited into a bank account under the Capital Profit Account Scheme, which can be used for the same purpose. There is no measure that you buy the new properties in joint names from you and your son or daughter. What is needed is that you should invest the required amount of long -term capital gain in your name. Your son or daughter can become a joint owner in the agreement, even if they do not invest any money in the property. To ensure that the property goes to your son and daughter after your death, you must prepare a will and specify the part of your son and daughter in all your properties, whether movable or immovable. Your son or daughter does not have to pay taxes on the property inherited after your death. Are tax benefits available for a home loan taken to buy the addition space, Ian redeveloped building? My Housing Society will redevelop and while I do, I intend to go to an extra area in the new apartment, which will be awarded to me and will be financed by a home loan. This is the only home I own. My query is whether the loan will be eligible for the tax benefit for principal as well as for interest? Under Article 80 C, a judge is entitled to a deduction to Rs. 1.50 Lakh for repayment of home loans taken from specific entities such as banks, housing financing companies, central or state government, etc. For a residence. This deduction is available with other qualifying items such as Life Insurance Premium, contribution to the provident fund and the public provident fund, etc. Since a joint owner of a property, which owns only part of the property, is entitled to tax benefits in respect of a home loan, there is no reason why you should not be entitled to tax benefits for interest and repayment of the home. Since your loan would be made to buy a share in the home property, in my opinion you will be entitled to claim a deduction under section 80 C, provided you opt for the old tax regime. In terms of the claim for your interest, it will be limited to Rs. 2 lacs a year, as you would stay in the house yourself under the old tax regime. If you opt for the new tax regime, you will not be able to claim any discount on interest. If you bought another home and left it out, you would have been entitled to pay the full interest in respect of the loan taken for the purchase of such home under the old tax regime, subject to the limitation of Rs. 2 Lakhs of losses under the home property against other income during the year. Under the new tax regime, you would be able to claim interest in the scope of the net taxable rental amount, as the losses under the home property against other income are not allowed under the new tax regime. How should the assets be distributed after the death of a person, and what is the tax liability of the recipient? My father passed away. Is there tax liability on me for the asset I receive on his death? In almost all the investments, my father jointly invested with my mother, so after offering the death certificate, all the investments in which my father was the first container would be redeemed/transferred to my mother’s name/account. Is she liable for taxes on the investments that have been so transferred? My father mostly invested in bank FD and mutual funds. How much money can I transfer to my mother, my wife or to me? When it comes to these assets, it depends on whether or not your Father has set up a valid will. If your Father has prepared a valid will, the assets that your father remains will be removed according to the will of the will. In the event that he is intermediary, ie, without leaving the will or not all the assets owned by him, such assets will be transferred to the legal heirs according to the provisions of the succession laws that apply to your religion. According to the provisions of the Hindu Follow -up Act, the assets of a person who dies intermediate state will decrease equally on the Class I heirs in the same share. In your case, the same level will be divided between your mother and you as his heir, for there is no other legal heir of Class I (if you have no brother or sister). Any asset received as an inheritance, either in terms of a will or under the recipient’s personal law, is not considered income of the recipient and is therefore not subject to income tax. Thus, you, your mother or your wife who receives your father assets do not have to pay any income tax on such heritage, as the receipt of the assets on your father’s downfall is not taxable in the hands of the recipient. Who can claim tax benefits for a home loan? My dad got a plot in a lottery scheme for the government and took a home loan to set up a home. I am the borrower in the home loan, but the register of plot is by my father’s name. The EMI payments are paid out of my account. I want to know if I’m going to get the income tax rebate for the EMI that pays me? My father does not claim any discount. We stay in the house. To claim tax benefits in respect of a home loan under section 80 C as well as section 24 (b), the person must be the owner of the property as well as the lender. The ownership can be either single or jointly. Since you are not the owner or co-owner of the property, you will not be able to claim any tax benefits in respect of the loan you maintain, even if you are a co-lender and the loan of the loan, and your father has not claimed any discount in income tax laws. If you want to utilize the tax benefit in respect of the loan, you must become a co-owner of the property. You can become a co-owner in two ways. Or you can buy part of the plot from your father or your father that gives you a part of the plot. Note that the home loan deduction will be available in the ratio of your share in the loan and not in the ratio of your share in the property. So, if you serve the full loan, you can take tax benefits in respect of the full interest and full refund you have available within the limits under section 80 C and 24B. Note that there are no tax benefits under the new tax regime in terms of section 80c available for the repayment of the home loan, whether the home itself is ored or left out. Similarly, deduction for interest in terms of section 24 (b) is not available for self -occupied home under the new tax regime. First published: 13 Apr 2025, 02:15 IST