Income tax & gift tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 July 2013 Dear Sir,

I am having 1 property situated in Mumbai purchased in the year 1995 for Rs. 5 lacs holding jointly in the name of my Father & Mother. Now I want to dispose off that property. Sale consideration will be around Rs. 40 lacs.

Further I would like to purchase new property for Rs. 45 lacs jointly in my name & my wife from the sale consideration of the above property.

Queries:
1) Whether I should transfer Rs. 40 lacs after the sale from my fathers a/c to my account
2) Whether my parents should gift the property to me
3) Whether the new property should be jointly owned by me, my wife and my father

What will be provisions of Capital Gains & Gift tax applicable.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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12 July 2013 If u sell 1 House property and buy other within 2years of sale thencap gin willb exepmted to the extent it is used to pur new house.

If they gift u then u needto make gift deed and reg it and need to pay stamp duty on it.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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12 July 2013 Resulting Capital Gain in the transaction would be Around 23.29 lac.
.
Your father & Mother both will be liable to capital gains tax of around 480000/- divisible according to their respective share in the property.
.
In such a case new house has to be purchased in the name of the parents and they can relieve from tax burden by investing the amount equivalent to capital gains.
.
You may show your name also by investing in the following manner-

Father 15.00 Lac 1/3rd Share

Mother 15.00 Lac 1/3rd Share

Yourself 15.00 Lac 1/3rd Share
.
You may borrow 10.00 lac from your parents .

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