Query on Holding Period for LTCG/STCG on Sale of Gifted Property

I'll address your queries: Holding Period and Capital Gain Tax: 1. *Holding Period*: The holding period will be calculated from the date of purchase by the father (August 2008) to the date of sale by the daughter (2025). 2. *Type of Capital Gain*: Since the holding period exceeds 2 years, it will be classified as Long-Term Capital Gain (LTCG). 3. *Waiting Period*: The daughter does not need to wait for 2 years from the date of the gift deed to qualify for the 2-year holding period. The holding period is calculated from the date of original purchase. Exemption from LTCG: 1. *Exemption under Section 54*: The daughter can claim exemption from LTCG under Section 54 of the Income-tax Act, 1961, if she invests the entire sale proceeds in a new residential property within the specified time limit. 2. *Conditions for Exemption*: To claim exemption, the daughter must meet the following conditions: - The new property must be purchased within 1 year before or 2 years after the date of sale of the original property. - The new property must be situated in India. - The daughter must not own more than one residential property, other than the new property, on the date of sale of the original property. Additionally, consider the following: -

*Transfer of Ownership*: Since the property was gifted to the daughter, the transfer of ownership will be considered as a transfer without consideration. This might impact the capital gain calculation. - 

*Indexation Benefit*: As the property was purchased in 2008, the daughter can claim indexation benefit on the cost of acquisition, which can help reduce the capital gain. 

Hello Rama Sir

Thanks a lot for your detailed reply on my query.