Purchase of house

A person wants to purchase house in name of his wife but funds will be transferred from his own account.
whether this transaction is valid ?
Replies (5)
Quick Summary
This discussion addresses the validity of purchasing a house in a wife's name when the funds originate from the husband's account. Two primary options are presented: transferring funds to the wife's account first, or purchasing the property in the husband's name and then gifting it to the wife via a gift deed. The consensus is that the transaction is valid, with the amount being treated as either a gift or a loan to the wife, potentially falling under Section 56(x)(2) for gifts.

You may have 2 options for doing this transaction

1. Transfer the funds to his wife's account and then purchase the house
OR
2. Purchase in your name and gift the house to your wife by preparing a gift deed
Transaction is valid , show the amount paid either as gift or loan to your wife.
Okay, thanks Rashmi and Akshat
Sec 56 (x) (2) will be shown as gift.
Welcome Dear

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