1) it is better you purchase property in your name only

2) it saves you legal complications in case your marriage breaks down

3) if you so desire you can purchase property in joint names of your self and your husband

section 54F of the Act provides that if a tax payer invests the sale proceeds received from the sale of any capital asset for buying a residential property; the long-term capital gains on sale of the property would be exempt.

2) section 54F being a beneficial provision, enacted for encouraging investment in residential houses should be liberally interpreted to include investment done in the spouse’s name too.

3) the entire purchase consideration for property will be paid only by you and not a single penny contributed by your husband . A purposive construction of the legal provisions is to be preferred as against a literal construction. Further, even if the provisions of section 54F are literally constructed, there is nothing in the section to show that the house should be purchased in the name of the tax payer only.

4) The Delhi High Court observed that section 54F does not require that the new residential property should be purchased in the name of the tax payer; it merely says that the tax payer should have purchased / constructed a ‘residential house’.

5) hence you would be eligible for claiming exemption from long term capital gains

1. There is no harm in making your husband a co-owner. You can add as many people/family members as you want. There is no legal hindrance in doing so.

2. There will not be income tax issue if your husband becomes the mere name lender.

1. You can ad your husband's name also as co-owner of the new property.

2. However, your name should be at first and only the 1st named person can claim exemption in capital gain tax if you had further added any amount on your 50% share of the gifted house and availed any capital gain thereof.

1. It is a gifted property only on which investment was made by your father and not you.

2. Since there was no investment made by you on the said property which was gifted by you, you are not required to pay any capital gain tax on its sale proceeds.

3. If you had made any investment on your share of the gifted flat for reconstruction/renovation etc., you shall have to pay capital gain tax only upon the said invested amount only.

You can claim tax exemption on the long-term capital gain on the sale of the house. To avail of this exemption, you must use the entire profit to either buy another house within two years or construct one in three years. Your husband can also be the joint owner.

1.The new property which you intend to buy can be in the joint names of you and your husband.

2. I do not foresee any IT related problems if your husband becomes joint owner of the new property.

We are two sisters who are in the verge of disposing of a property gifted to us by our father. I will be getting 50% of the share (we do not have any other siblings), which amount I am reinvesting to buy another property.

Please let me know if the new property, which I am buying now from the sale proceeds of the gifted property, should only be in my name or my husband can also be a joint owner. I am interested to have my husband's name also included in the sale deed, though he is not contributing any amount in the said purchase.

There can be no consideration passed in the gift deed.

You can sell your share of property and reinvest the same in another property.

There is no legal infirmity in adding your husband's name in the property sale deed now proposed to purchase, it shall be joint sale deed.

I am asking this from the income tax point of view, whether there will be any Tax related problems if my husband is the co-owner of the property, which I am purchasing from the sale proceeds of the gifted property from my father

There can be no taxation problem if you include your husband's name in the property to be purchased though you have obtained money out of it.

A gift deed cannot have any sale consideration.