LTCG on sale of House

[CA AJAY KUMAR AGRAWAL]

Mr A & Mrs A are both working persons & living in same house. Said house is in name of Mrs. A. The house was constructed / bought long back. Mr A has another residential house in his own name. Now Mrs A want to sell her own house & both want to shift to another house (which Mr A has in his own name). Mr A wants to construct another floor / floors on the said house & is ready to execute transfer deed of new floors in favour of Mrs A. Can Mrs A invest the LTCG from sale of her own house & invest in this new house & be eligible for LTCG? Kindly share your valuable views.

AI Summary

Long-term capital gains reinvestment: eligibility when newly constructed floors on spouse's property are transferred to claim exemption. Whether long term capital gains exemption can be claimed when sale proceeds are reinvested by acquiring newly constructed floors on a property owned by the husband and those floors are thereafter transferred to the wife; focus on whether such construction plus deeded transfer meets the acquisition and ownership requirements for reinvestment within the prescribed period and whether transfers involving related persons affect eligibility.