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Conversion of some immovable property in the name of the spouse.

14 October 2018

Can one can reinvest the sale proceeds of some immovable property to purchase some other immovable property in the name of spouse and avoid long term Capital Gains tax?

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2 Replies

SHIVANI KUDTARKAR (512 Points)
Replied 14 October 2018

no if the sold property is in name of only one person, capital gain liability will arise in his case. if the other property is purchased in the name of spouse, even no exemption u/s 54 can be claimed if it is long term capital asset. further, income generated on new property, if any, shall also be clubbed in the hands of original owner

Gauthami (Student CA Final ) (431 Points)
Replied 15 October 2018

yes you can use the sale proceeds of an immovable property and purchase another immovable property in name of ur wife so that LTCG will be exempted. it was the judgement given by dept in case of CIT Vs Kamal Wahal (Delhi)