Exemption

Exemption

My wife got a residential property settled in her name from me on 21.9.2012. She proposes to sell it and buy a residential flat in her name on 25.9.15. As on date she is also a joint owner of a flat along with me. Is she eligible for exemption from long term capital gain?
I shall be thankful for your valuable opinion.
Ganesamoorthi

Asked 8 years ago in Capital Gains Tax

Firstly long term capital gains will have to be clubbed in your income u/s 64 income tax act. It you invest in a residential flat then you can claim exemption. Please be clear on section 64.

Vijay N. Kale

CA, Hyderabad

248 Answers

13 Consultations

4.9 on 5.0

Talk to Vijay N. Kale

Yes. U will be eligible.

Shashank Surana

CA, Chennai

60 Answers

5 Consultations

4.3 on 5.0

Talk to Shashank Surana

The long term capital gain on the sale of property in the name of your wife may have to be included as your income, if the asset was acquired by her out of the funds gifted to her by you. Pl check this aspect.

Exemption of capital gain can be claimed if she invests in capital gains bonds or invests in a residential house.