LTCG deduction while buying property jointly with wife as co-owner

Hi,

At the outset, it is not recommended to add joint owner if he/she is not contributing to the property.it may not impact your exemption eligibility but may create complications in future. Is there any specific reason you want to include her? If so you can consider showing her share as 1%.

There are several case laws to support that even if you buy a new house in joint ownership, you will be allowed to claim exemption u/s 54. You just need to invest 52 lacs in the new property.

It's recommended to mention the ownership ratio.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

You need to invest only 52 lacs .

Hi,

You will need to invest Rs. 52 lakhs only to claim exemption of capital gains tax. Since you would be paying the entire amount, there should not be any issue. There are many case laws where the exemption has been granted in similar cases.

Hope that clarifies. You can get in touch for any further clarifications.

Regards,

Nikhil.

If the property you are selling solely financed by you then only you are liable for CGT and benefit of exemption would be available to you only. You can add your wife name as co-owner in the new property as a legal owner.

Hi

The capital gain exemption shall be available if capital gains of 52 lacs are reinvested- whether in your name or in co-ownership with your wife. Since your wife is not contributing anything, there is no issue with regards to claiming capital gain exemption.

Hi,

You only need to invest an amount equal to capital gains of 52 lacs earned. Since the property is purchased by your funds, as per the tax law,, you will remain the deemed owner of the property and you spouse may be 50% legal owner but that would not effect your taxation.

You shall get the full capital gains exemption if u invest 52 lacs in the new property .

Thanks.