Capital gain adjustment

LTCG is exempt for an individual or HUF on sale of a residential house property, if such gains (not the whole consideration) is utilised to purchase or construct another residential house. It should be noted that the new house should be purchased within one year before or two years after the date of transfer. In case of construction, the new house should be constructed within three years from the date of transfer. Exemption will be limited to the capital gains or the cost of the new house, whichever is lower

Property jointly held by yourself, your brother and your mother was sold. You are buying/constructiong new house. Are you and your brother buying a single house jointly or two separate houses. Your mother can claim exemption only if her name is added as a joint owner of the new house and not if she otherwise utilises her share of cash. There  are also certain bonds which if your mother buys to the extent of her share of capital gain, she will be exempted from capital gains tax. The limitations mentioned by Adv. Rama chary Rachakonda shall also apply. In any case your mother will have to submit IT returns.

My be i will put in this way ,with the C.Gain of my brother and myself we are planning to buy a property for ourself individually. My question is can we club our mothers CG Share to our capital gain ? Or is it better/advisable to get her a seperate property .

Pls advice

Her name should be there as either joint owner of the property or as owner of a separate property. If you are buying flats in a building you can buy three adjacent flats in three names. What is the value of each share of the property sold. How old is your mother?  Had your mother any separate income before the sale of the property? Has she got a PAN? What do you mean by clubbing of your mother's share? Do you mean that your mother will keep her share of cash with her only and you will put equivalent amount of your own in the property?  Or is it that she transfers the cash to you without her name in the new property? What you are saying appears very complicated?

If your mother gives you cash to acquire property without her name in the property that would amount to gift. Gift deed will not exempt one from liability to pay Capital Gains Tax.

1) As per IT act capital gain tax is payable in two ways i.e. for shrt term gain and long term gain.

2) As an individual ur whole amountor benefit for FY is totally consider for that person only. Each individual is different in eyes of law. Hence daughter and mother have to pay different tax for each FY.

 If the property that has / had  been sold is SOLE Residential property of your mother / yourself / brother , either 1  or for all  , then in that case , NO LTCG is required to be computed and paid ( logic is ORG.SHELTER is No more), if any one of them does have -owns / resides with some other resi property , then LTCG comes into force ,  and has to be dealt accordingly.