When Smt Motwani from Juhu sold her shares, she made a whopping Rs 8.31 crore in long term capital gains (LTCG). However, instead of paying taxes on this gain, she decided to reinvest Rs 6.91 crore to buy a property in June 2021, claiming a tax exemption under Section 54F. The property is located on Juhu Tara Road, Santacruz (West), Mumbai. However, this move sparked a tax dispute with the Income Tax Department.
The issue arose because the property she bought to offset the tax on the sale of her unlisted shares, was owned by none other than her husband, Mr Motwani. So she sold her assets (unlisted shares) and reinvested the gains into a property owned by her husband and ended up not paying any income tax.
