Dear sir ,
My mother has constructed a house by availing capital gains account scheme in the year 2019. Can this property be transferred through gift deed to her children?
Suppose if my mother sells this house before completion of three years, will the tax exempted be reversed.should she once again pay short term gains tax and also tax exemption availed. Please reply. is it wrong by transferring the house through gift deed.
I believe that your mother can transfer the property to her children through a Gift Deed.
There may not be any issue with regards to tax implications.
In case, she sells the property then there will be capital gain tax implications.
The three year clause with respect to CGAS is ;
- If you do not utilize the amount in CGAS account within three years of the sale of the first property, such un-utilized amount will be treated as LTCG this will lead to taxation of the unutilized amount as long-term capital gain after three years of the sale of the first / original property.
Kindly consult a CA as well!
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