Capital Gains Tax on sale of Parental Property

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  1. GMurugan

    GMurugan New Member

    Sir, I already own a house. Now I received the ownership of a house through my father's settlement deed. If I sell the newly inherited house and purchase a new apartment jointly in my wife's name and my name, can I get the exemption under capital gains taxes?
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    As the inherited house is in your name, if you sell this house and intent to claim capital gains exemption under Section 54, you'll have to purchase the new residential house in your own name.

    If you purchase the new house in your wife's name, the capital gains tax exemption won't be allowed.

    The solution that I can think of in this case is that you purchase the residential house in Joint name with ur wife. In case of Joint Name, as you are also a joint owner, the exemption would be allowed.
     
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