Can I invest capital gains from property in resale flats/houses or new flats only. Can I invest capital gains for buying flats in joint names with my wife. Is it advisable.
Hi,
You can invest the capital gains from property in buying resale flat or new flat whatever suits you. There is no restriction.
It is not advisable to invest capital gain amount in Joint name as recently bombay high court has disallowed the exemption is such case.
You just need to invest the amount in a house be it a resale or purchase.
Yes you can invest in joint name no issue.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
1) You can invest in Resale Flats also. The Section uses the word purchase or construct a residential house. So, it is your choice whether to invest in new property or resale property.
2) You can invest in joint name with your wife. Whether it is advisable or not depends on individual. It's again your choice!
Dear Sir,
Yes, you can invest capital gains from property in resale flats/houses or new flats.
Yes, you can Invest capital gains for buying flats in joint names with your wife.
In my opinion, better to buy the flat in joint registration because tax benefits get divided among co-applicants in case of a joint loan and joint ownership.
Hello,
The Exemption is available even in case of resale or old residential properties.
Yes, you can purchase the property in other's name also, but make sure the funds are transferred by you for the property.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Hello Sir,
Yes,you can invest capital gain any type of residential property be it a resale flats of new flats to claim exemption.
Yes, It is advisable to invest the capital gains for buying flats in joint names with your wife.
An important benefit of co-owning a property is increased loan eligibility.
Co-owners of the property can easily claim income tax deduction benefits on both - principal and interest amount. As per Section 80C, co-applicants can avail a benefit of minimum Rs 1.5 lakh a year on principal amount and up to Rs 2 lakh on the interest paid. If all the co-applicants are contributing to the EMIs, tax benefits can be availed by all of them. Overall, a jointly granted home loan allows co-owners to avail multiple tax benefits from a single loan.
- You can invest in new flats or second sale. Both the options are valid.
- Yes you can add name of wife.
