Positive impactCorporate Action
Capital gains tax exemption for ‘Jodi Flats’ possible as single residential house
BusinessLine 57 min ago·23 Oct 2026, 7:54 am
The Indian government is reportedly considering an amendment to tax laws. This change would allow the sale of a 'Jodi Flat'—a property registered in the names of two spouses—to be treated as the sale of a single residential house. This move aims to provide relief to homebuyers who often face difficulties selling a property jointly registered as two units.
Currently, the tax rules for such properties are complex. If treated as two separate units, the sale might trigger capital gains tax. However, if the new proposal is accepted, it would likely allow the seller to avail of the standard long-term capital gains exemption, which is currently available only for the sale of a single residential house.
For investors, this clarification is significant. It could simplify the exit strategy for joint property owners and potentially boost liquidity in the real estate market. Investors should watch for the official notification from the finance ministry, which will confirm the exact details and implementation date of this proposed change.
Excerpt from BusinessLine
Buying two flats adjacent to each other, or one above the other, with a common entrance and treated as one residential unit, can be considered one for capital gains investment, the Income Tax Appellate Tribunal (ITAT) said. However, this will be possible subject to physical verification by the Income Tax Department.…Read the original at BusinessLine
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- Category: Corporate Action.
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