Tax liability on sale of plot and reinvesting in an apartment

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Gopi Chodimella

36 Points Posted on 24 September 2018

Hello,

I own a Plot and looking to sell and purchase an Apartment. This Plot is almost 15 years old and I understand LTCG is applicable. As per 54F, I can avail the exemption for this LTCG if I am going to reinvest the entire proceedings in the new Apartment subject to the following conditions :

1. I own only 1 other house

2. I reinvest within 2 or 3 years

Now My questions are as below :

1. I already own 2 houses. Are there any clauses that allows me to take the exemption?

2. If I register one of the houses to my Wife so that only 1 house is left in my name, will that work legally?

3. I have a diughter, who is 18+ years old and unmarried. Can I transfer one of the houses to her name to avail this benifits?

4. Are there any other means to save taxes, while I purchase the new Flat?

Any help/guidance will be appreciated.

Thanks,

Gopi

Replies (5)

Ruchika Somani

Coaching and Practice in Tax Audit Law

2572 Points Posted on 24 September 2018

Yes, you can transfer already held property in name of wife or daughter who should have any other source of income. Transfer shall be for a consideration which can be even in loss. If the person you transferring property doesnt have any other income LTCG will be in your hand.