• Invest in Infrastructure Investment Trusts - InvITs

1. I have sold property (I am single owner) and it is long term gain. (More than 3 years), instead of buying new property in 2 years, can I invest in Infrastructure Investment Trusts (InvITs) . like IRB InvIT? Or I should invest in property only. I am not interested in bonds.

2. As I sold property on my name, while buying new property, can I invest on my wife name? or should be invested only on my name to avail tax benefit on long term capital gain.
Asked 7 years ago in Capital Gains Tax

Hello,

1. You cannot invest in InvITs bonds, if you want to invest then you can invest in Long Term Capital Gain Tax Saving Bonds i.e REC and NHAI upto a maximum of Rs.50Lacs within a period of 6 months from the date of your sale.

2. The INvestment cannot be made in your wife's name, it has to be made in your name only to claim Capital gain Tax Saving Benefit.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

Hi,

1. You can't buy InvITs, if you want to avail capital gain exmeption. You have to buy/construct residential property.

2. It is strongly advisable to buy property in your name to avoid unnecessary questions from income tax department.

Though, there are many judicial precedents where court has allowed the investment in wife's name as eligible investment but those case are not free from litgation.

Please feel free to call/ revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Hello,

1. No, you cannot invest in Infra trusts. Since you are not interested in bonds you have to invest in a house property.

2. No, you cannot invest in your wife's name but you can keep her name as a joint owner in the agreement.

Regards

CA Keerthiga Padmanabhan

M.Com., CA, LLB

Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
27 Consultations

5.0 on 5.0

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