ITAT Grants Capital Gains Tax Exemption for In-Law Property
MUMBAI: In a landmark decision regarding capital gains tax exemptions, the Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has ruled that buying a residential property from close relatives should not be categorized as a sham transaction solely due to the tax advantages it may offer. The tribunal granted a ₹41.5 crore exemption under Section 54F to an individual who purchased a flat from her in-laws, overturning the tax department’s assertion that the transaction was merely a facade. Section 54F permits individuals to exempt long-term capital gains from the sale of any asset, other than a residential house, provided…