Capital gain on property gifted to wife

Question

Asalam o alikum,

I 've gifted a property to my wife in 2025 , the property was purchased in 2015

Since the property was purchased before 01-July-2024 and more than 6 years have passed, there should not be any capital gain tax applicable, incase of sale.

Q-1 - If my wife sell this property, will there be any capital gain tax applicable.  Note that there proper documentation are completed like gift deed and property registeration for transfer the property in wife name   

Regards

Answer 1

Since you have gifted the property to your wife in 2025 through a valid gift deed and proper property registration, she is now the legal owner. Under Income Tax Ordinance, 2001, transfer of an immovable property through gift to a relative (including spouse) is not treated as a taxable disposal. This means no capital gains tax (CGT) was triggered at the time of transfer from you to your wife.

Now, when your wife sells the property, the CGT implications will depend on:

1. Date of Original Acquisition (2015):
   For CGT purposes, in the case of a gift, the original purchase date and cost of the donor (you) is carried forward to the donee (your wife). That means, although she acquired the property in 2025, for tax purposes it will be treated as if she purchased it in 2015.

2. Holding Period:
   Since the property was originally purchased before 01-July-2024 and more than 6 years have passed, the gain on sale is exempt from CGT under current law.

✅ Therefore, if your wife sells the property now, no capital gains tax will be applicable, provided the gift deed and transfer documentation are properly executed and registered.

Comments

Can you please refer to income tax ordinance section which refer to this provision of clubbing the holding period of doner and donee?