LTCG on gifting property sale proceeds

This discussion clarifies the Long Term Capital Gains (LTCG) tax implications when gifting property sale proceeds to parents. If you've owned the property for over five years, you'll first need to calculate and pay any LTCG tax due on the sale. The remaining amount can then be gifted to your parents without further tax liability for you, provided the transfer is done via banking channels with a gift deed. Adding parents as joint owners to a new property purchased with sale proceeds can allow you to claim deductions under Section 54 of the IT Act, but the investment must be yours.