Neutral impactEconomy
Sold home jointly owned with wife? You can claim 100% LTCG benefit - here’s how
Times of India 1 hr ago·1 Sept 2026, 7:36 am
The recent tax update clarifies how long-term capital gains (LTCG) tax is calculated when a property is sold jointly with a spouse. Previously, the tax was often split based on ownership percentages. Now, if the funds used to purchase the first property were entirely from one spouse, the entire sale proceeds can be taxed as that spouse's LTCG. This change is significant as it allows for a more favorable tax treatment, potentially lowering the overall tax liability compared to a standard joint sale.
This shift is particularly relevant for investors who have built their wealth through a single asset and are now looking to diversify. By understanding the documentation requirements, such as proving the source of funds for the initial purchase, investors can better plan their asset transfers. It ensures that the tax benefits are maximized without unnecessary complications.
Moving forward, investors should focus on organizing their financial records. Clear documentation of past transactions is crucial to successfully claim this benefit. As tax laws evolve, staying informed about these nuances can help in making more strategic investment decisions regarding property sales and reinvestment.
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- Category: Economy.
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