If husband gets 50% right of gift of urban plot from wife

Plot purchased by wife in 1990.

She gifts 50% rights to her husband in 2012.

Both sold the plot in 2012..

Gift deed should be stamped and registered. And shall be non-taxable in the hands of the husband.

Now the plot is sold and both shall be liable to pay long term capital gain and file returns individually. In case, the husband avails exemption u/s 54F and invests the entire amount of long term capital gain, then no tax shalll be payable for both husband and wife. But if some tax is payable in husbands ITR, the wife shall be liable to pay due to clubbing provision.

Originally posted by : Mihir
	Plot purchased by wife in 1990. She gifts 50% rights to her husband in 2012. Both sold the plot in 2012.. Gift deed should be stamped and registered. And shall be non-taxable in the hands of the husband. Now the plot is sold and both shall be liable to pay long term capital gain and file returns individually. In case, the husband avails exemption u/s 54F and invests the entire amount of long term capital gain, then no tax shalll be payable for both husband and wife. But if some tax is payable in husbands ITR, the wife shall be liable to pay due to clubbing provision.

Thank you so much Mr. Mihir,

After selling the Plot, to get benefit of 54F, can husband and wife together buy one house property in joint names and deposit un utilized funds in  Joint Capital Gain Accounts Scheme before due date of filing of return?

Or should they invest separately   for house property and  deposit unutilized funds in separate Capital Gain Accounts Scheme before due date of filing of return to avail section 54F benefit?

Thank you so much
 

No, it is not compulsory that husband and wife shall have to invest separately. They can deposit in joint capital gain account and then within 2 years invest in purchasing another property in joint ownership. But you cannot file your IT returns before depositing in capital gain account.