Capital gains on Property

Hi, you cannot gift it to your wife for a period of 3 years from the date of purchase/completion of construction of the new property

Hello,

The lock-in period under Sec. 54 for new residential property is 3 Years from its purchase/construction.

I hope this answer satisfies your requirements.

Regards,

CA Hunny Badlani

Dear Sir,

Hope you are doing well !!

If the new house is sold/gifted within 3 years from the date of purchase or construction,  then the exemption claimed earlier under section 54 shall be indirectly taxable in the year of sale/gift of the new house property.

The number of years for which one needs to hold a property is 3 years.

However technically this transfer won't be a transfer as it will be a gift and this won't violate any terms of section 54.

Further, gifting property to wife won't help in tax saving as it would result in clubbing of income if any arose from such property.

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

Thank you.

As per the Income Tax Act " any transfer of Capital Asset under a GIFT or WILL, will not be regarded as transfer for the purpose of capital gains tax." Therefore you can plan for the gift any time . The capital gain tax would arise if the property is sold by your wife after the specified period of holding (this period includes the no. of years held by you as well). That is your wife can sell the property only after the completion of 3 years from November 2018.

You cannot gift the property to your wife till November 2021.

As per u/s 47(iii) gift is not transfer hence no capital gaim arise in case of gift

Hi

You need to hold property for the 3 year after that you can gift it.

I am firm on my answer. There is no provision of such gifting in the relevant income tax section. The buying of property is linked to a particular assessee and you are breaching the section if you are gifting it to your wife or in that case anyone

You need to choose an expert on whom you have belief.

It's law people have different interpretation for different sections.

Hi

As per the conditions for claiming capital gain exemption, you cannot transfer the property till 3 years. Gift of a property amounts to transfer of asset. Thus, it is not permissible.

Gifting the property would make you lose the benefits of capital gain exemption.

The law is silent about it. But to be on a safe side it is better to hold the property for 3 years.

Hi

As per my understanding it is better to hold for 3 years.

For safer side, you need to hold the property for 3 years.