Husband's income, wife's investment, tax exemption

Yes you are liable to pay capital gain tax and also file the return

Hi,

- No you are not liable for capital gain tax if value of house is more than capital gain earned. You can avail exemption even investment in new flat is purchased in the name of wife.

Thanks

Hi

You need to calculate the capital gains first. If the amount of capital gains are invested in New property, no taxes shall be applicable.

For capital gain calculation, please share the date of acquisition, cost of acquisition, any improvements, date of sale, sales consideration, transfer expenses, etc.

Yes you are liable to pay capital gain tax because your name is not there in the purchase deed. Now if we see technically you have gifted the money from the sale of old flat to purchase new flat so you are only going to remain the deemed owner of new flat so i would suggest to make purchase deed in your name and just make your wife co owner of that house this will help you save tax.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hi,

As far as the capital gains are concerned, the amount reinvested is much more than the capital gains so there will be no tax liability. However, there may be a query since the reinvestments is not in your name. But there are many prior instances where such exemption has been given and especially in your case it will be evident that your money has been reinvested as your wife does not have an individual source of income. Having said that, it is advisable that you enter your name as the joint owner.

Regards,

Nikhil.

In that case, capital gains shall be exempt from tax. Claim the exemption under section 54 and file the ITR accordingly.

The exemption is available even when the Property is registered in your wife's name.

However, if there is any income (like rental income) in future arising out of the property in name of your wife, such income shall be taxable in your hands due to clubbing provisions.

Dear Sir,

- As the cost of new house is Rs.65 lacs which is more than capital gain earned i.e. Rs.28 lacs, the entire capital will be exempt.

- In the case of CIT vs V. Natarajan 2006 154 Taxman, exemption is available even the investment is made in the name of wife.

Thanks

Dear Sir,

Hope you are doing well !

Yes, the entire capital gain will be exempt as cost of new house is more than capital gain amount.

Further, you will be eligible to claim exemption even if property is registered in your wife's name.

Just get her name as the second owner so she doesn't have to undergo name change after you.

I don't think just by investing in your wife name will help you get exemption just get the property in joint name.

Hi,

No, you are not eligible to pay capital gain tax.

It is advisable that just get the property in joint name to avoid any litigation.

Hi,

Since you have invested the entire capital gain amount in buying new hosue, you can claim benefit of section 54/54F and no need to pay capital gain taxes.

However, since you have bought the house in your wife's name, there could be some questioning from income tax department but there are case laws which support the position that investment can be made in close relatives name.

Sir,

You should purchase the flat in the joint name. She can be a primary owner and you secondary. TO the extenet of capital gains you can definitely say that you have acquired another property. Hence, I believe there should not be any issue. YOu will have to establish that the house is purchase out of the capital gains earned.

Hi

Since full capital gain is re-invested in new property,no question of capital gain tax arises.

No issues,you can claim the tax benefit ,flat registration on wife name does not matters as there are supporting case laws for same situation.

Hope it helps.