Your Query:I sold a property recently and bought another property within 1 year to cover for capital gains. Can I immidiatly gift it to my daughter? Is there a hold period?
Will it attract capital gains again?
Reply: Yes,there is a no-transfer period of 3 years from the date of purchase of the new property as provided in Section 54F(3) of the Income tax Act 1961. If the new property is transferred within that period, the amount of Capital Gains (which had arisen from the earlier sale) will be deemed to be the income (from Capital Gains) of the year in which such new property is transerred.
If I understood Mr Rajagopalan suggestion. If I transfer my new property to my daughter within 3 years of my previous property sale, I am to pay capital gains. While Mr Baala is suggesting that I do not need to pay?
To explain again my example.
I sold Property ONE Jan 1st 2012 and bought Property TWO Jan 1st 2013 to satisfy Property ONE sale capital gains requirements.
But if I GIFT transfer Property TWO to my daughter Jan 1st 2014 will it incur capital gains from Property ONE
Dear my answer to the query remains same. There is no liability of Capital gain. If you want i can elobrate on the present situation, my submission is the same. In the present case there is no liability on account of CAPITAL GAIN.