Property transfer/gift

Dear Mathew,

Clarify What do you mean by transfer without money transactions. You can gift the property to your wife, however, even if there are no tax implications on gift but in case of sale of the gifted property by your wife within 3 years it will attract short term capital gains. The best option would be sale of the property by you(Since in such case the property is held by you for more than 3 years and therefore you will be eligible for LT Capital gains) and the resultant capital gain can also be invested either to purchase a residential house in your name or jointly in both the names or even in yours wife's name. Further, the money received on sale of the flat will not be eligible for exemption of Capital gains if invested in a open plot.

Thank You very much for the reply. Your prompt reply has helped me to take a correct decision

Thanks

Mathew