Dear all
The query is regarding treatment of capital gains under section 54.
Basically the mother wants to sell off her house (which she got via a relinquishment deed done by 2 sons and 1 daughter post husband's death) to her son 1 at 50% of market value. The money thus generated will be used to buy another house for son 2 as his share of the ancestral property.
Now can the mother sell the property and get the money from son 1, and buy the second property in name of only her son 2? The reason for doing this is that if she purchases it in her name to avoid capital gains, then son 1 can claim his share in the new property as well so to avoid any litigation, she wants to purchase it solely in the name of second son?
Can this be done and still get the benefit of capital gains exemption as per section 54? If not, then what is the way out of this?
