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

Can Mrs. A reinvest LTCG from her property sale into building new floors on Mr. A's house for tax benefits? Mr. A and Mrs. A, both employed and residing in a house owned by Mrs. A, are considering selling this property. Mrs. A intends to invest the long-term capital gains (LTCG) from the sale into constructing additional floors on a separate house owned by Mr. A, where they plan to move. Mr. A is willing to transfer ownership of the new floors to Mrs. A. They seek advice on whether Mrs. A can invest the LTCG in this manner and still qualify for tax benefits associated with LTCG reinvestment.