I currently own two properties, one apartment and an ancestral house in two different cities.
I have 1/3rd share in the ancestral house along with my siblings.
We are planning to sell the ancestral house shortly. Can I utilise my house selling LTCG amount u/s 54 for purchasing another apartment either as a single owner or jointly with my son?
If yes, do I have to purchase in the same city as the ancestral house?
Eagerly awaiting your expert views to the above question.
Many thanks in advance.
Ans: You can consider reinvesting the gains in another property.
These investments are to be made within the specified time limits of upto one year prior to the sale or upto two years after the sale (three years after the sale, for an under-construction property).
You can construct/buy a house anywhere in India within the specified time period. You can go ahead and purchase the property in the joint names of yourself and your son.
To get the benefit of reinvestment, your contribution should keep in mind the deduction that you would like to claim.