LTCG tax relief under section 54

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Sanjeev (Querist)
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26 June 2023 Hello Sir,

1. I have sold house property inherited from my father for Rs75L in May 2023 and received long term capital gains of Rs 50L
2. Besides this, I am also planning to sell one more property for Rs65L which will give me Rs35L of long term capital gain.
This property was self acquired by me in 2003, I had fully invested in this property and there was no investment from wife; however, this property was registered in my name and my wife's name jointly
3. With the sale proceed from these 2 properties, I am planning to buy a NEW property that will cost around Rs 1Cr,

Kindly clarify,
A> Will Long Term Capital Gain be applicable for my wife also, even though there was NO investment from her side
B> In case, LTCG is applicable for my wife from 2nd property, will it be equal for both i.e Rs17.5L each. If yes, then total LTCG will be :
i> For me, LTCG will be Rs 67.5L (Rs50L from inherited prop + 17.5L from self acquired prop)
ii>And for my Wife it will be Rs17.5L
C> While buying new property do we need to mention exact % ownership in registry of property as per respective investment from both of us , i.e. , Rs 82.5 L (LTCG + extra amount) from my side and Rs17.5L (LTCG only) from wife side so that both can claim tax relief under section 54?

Regards,
Sanjeev

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 June 2023 1. No, when the total LTCG declared by you.
2. Claim can be as per investment made by each Co-owner. No need to specify percentage of ownership.

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