Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 June 2017 My one client have 1 flat his own name in Mumbai
And one flat is on his mother in law in Mumbai.
Now client wants to sell both the flat and buy new big flat in Mumbai.

Please guide about how to tax planning for flat on mother in law name.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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20 June 2017 If he purchase house in name of his mother in law then benefit of exemption u/s 54 is allowed to mother in law alone.

He can gift his property to his mother in law by executing gift deed & then sell it after some time. So, maximum exemption can be availed by him of new flat purchased.

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