Financial Express-Can purchasing a flat in your wife’s name lower your tax liability?
Income Tax regulations concerning properties acquired in the name of a spouse indicate that tax obligations arise when a property is sold at a profit or when it is leased to a tenant. To mitigate these tax responsibilities, many individuals opt to purchase real estate in their spouse’s name.
However, this strategy does not yield the intended tax benefits according to existing regulations. Transferring funds to a spouse’s bank account for the purpose of acquiring a property in her name does not exempt the husband from capital gains tax liabilities that may arise upon the sale of the property, nor does it relieve him of tax obligations on income generated from renting it out.
