Settlement of loan

Hi,

Yes, she can also add your wife as third co-owner of the flat.

Yes, your understanding is correct subject to conditions.

She can claim total tax exemption by using the money she gain from selling any asset (except a house property) to buy a house property, which needs to be bought one year before the sale or two years after thse sale. For under-construction properties, the new property should be ready within three years of the asset’s sale. 

Please note that in order to claim exemption, she needs to invest the capital gain amount if a house property is sold. However, in case of sale of a land, entire sales consideration needs to be invested.

Yes she can

Hello,

Yes, you and your mother can add your wife as a co-owner to the flat.

Yes, the exemption will be available if the new house property is acquired with limits as per sec. 54/54F.

Dear Sir,

Here is my reply to your query:

Yes, your mother can also add your wife as the third co-owner of the house.

Yes, your wife can invest the sale proceeds from the other house property as her share as a co-owner and save the capital gain tax on it. But in this case there should not be any other house property in the name of your wife (other then the property she is selling and the property is buying as co- owner).

Thanks and Regards 

Divya Chugh 

Hi

Yes, your mother can add your wife as the co-owner.

Yes, your wife can save capital gain taxes claiming exemption under section 54F by contributing to the new purchase of residential house property.

What is the kind of capital asset she is selling?

Yes she can save capital gain tax if the said asset is a flat or land and if it's a land your wife should not be holding more than 1 flat before that.

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Thank you