long term capital gains

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Hello Panjak ji. We sold a residential flat for rs. 70,80,000 on 1-7-2011. It was bought in july 2001. It was in my father, mother and my name. we recd amount as rs.3540000 to my father, 1770000 to my mother, 1770000 to me. I also bought a residential property in june 2011 in my and my wifes name 50% each for rs. 50 lacs. Capital gain in my name is rs. 9 lac approx. Can it be adjusted against new house i bought. Capital gain in my father and mothers case is approx 17.50 and 9 lac. Can my wife sell her portion to my parents to avoid capital gain. Can it be done by means of aggrement to sell rather than sale deed to avoid registration charges.

1 Answers

As you bought a new house with value more than capital gains, there won't be any income tax on you gains. This is as per section 54 of income tax.

Your wife can sell her share to your parents, but you will have to pay stamp duty and registration charges for that again. It cannot be done with buyer-seller agreement.

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