LTCG on gifted residential property to Wife

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Meghna (Querist)
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28 March 2021 50% share of a residential property was gifted to wife by the husband. The deed specifically states that he has transferred 50% of his share as a gift to his wife. The property was subsequently sold.
(1) Will the LTCG be computed with respect to 50% share each in the hands of both
(2) LTCG is computed separately for each of their shares - can each of them claim exemption u/s54 in case new property purchased by them jointly
(3) Can each of them invest in capital gains scheme FD claim exemption
(4) There is a provision under Sec. 27 and sec 64 of cubbing of income how it will have impact on the above transaction.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 March 2021 Capital gains exemption can be claimed by both.
In case capital gains tax payable clubbing provisions applicable and entire capital gains will be taxable in the hands of husband.

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CA PARTH SHAH

CA PARTH SHAH (Expert)
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29 March 2021 Capital Gain will be clubbed in the hands of Husband. So Husband will have to full eemption of Capital Gain by making adequate investments himself.

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Meghna

Meghna (Querist)
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31 March 2021 Thanks for yours valuable reply

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