I purchased an appartment jointly with wife in 2012 at Rs 17 lakhs. Now I want to sell it at Rs 33 Lakhs. Can I invest the amount in purchasing a new appartment at Rs 85 lakhs solely in my wife’s name for saving tax on capital gains. Can I show the entire capital gain in my wife’s name while filing ITR.
Also please let me know whether the reinvestment can be done jointly in the name of my daughter and wife with a 50% share each.
You can purchase apartment in the name of your wife , but the Capital Gain exemption will depend on who actually funded the purchase of the property , regardless of whose name , it is registered .
If the apartment was purchased by you , capital gain arising from its sale will be taxable in your hands alone , and only you will be eligible to claim exemption on re investment in new apartment.
Re investment can be done jointly in name of your daughter and wife with share of 50% each.
Thank you Anita. Please enlighten me one more time. The appartment was purchased by me in 2012. I want to reinvest in a new appartment to save tax. Do I have to register the new appartment in my name in order to claim exemption benifits. I believed I could register the new appartment in my wife’s name and still claim exemption benifits. Please guide me.
You can register the new appartment in your wife’s name . However , to avoid potential queries from the Income tax Officer and possible litigation , it is advisable to purchase new house in joint ownership.
As long as the investment is made by you in new residential proprty, there is no restriction on claiming the exemption.