Sale of share in house property

This query is : Resolved

Rajeshkumar Lalwani (Querist)
Follow

28 August 2012 when wife sells her share of 50% in house property to his husband(who is already holding 50% share)-- then whether this shall be considered as sale of right OR transfer of house property??

Actually, wife wants to claim exemption u/s 54 for purchase of new House property by selling her share in this House Property. Pl advice whether this can be done?
Urgent. Please reply as soon as possible.

Ahamed

Ahamed (Expert)
Follow

28 August 2012 Why lol, first of all why we have to create capital gain? and then claim exemption for it..

Better try to give it as a gift and buy another house property.

Message likes : 1 times

SANYAM ARORA

SANYAM ARORA (Expert)
Follow

28 August 2012 Agreed with the reply

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

Rajeshkumar Lalwani

Rajeshkumar Lalwani (Querist)
Follow

28 August 2012 I agree u are correct.Gift to a specified relative is exempt and benefit of indexation shall also be available from the date of purchase by the previous owner. But clubbing provision shall apply and income on such property shall still be taxable in the hands of transferor..

Further i want answer to my first question "wife sells her share in house property to husband then--it shall be 'Transfer of house property' or 'sale of rights'????

Urgent.

Soumitra Basu

Soumitra Basu (Expert)
Follow

29 August 2012 It will be sale of house property entitle for benefit under section 54

Dhirajlal Rambhia online

Dhirajlal Rambhia online

(Expert)
Follow

07 October 2021 In case of sell of part of house to co-owner, it will be treated as sell transfer only, and hence will be entitled for sec. 54 benefit.