REDUCING TAX LIABLITY

Save Share

This query is : Resolved

AJITH PARAKKA (Querist)
Follow

28 April 2022 I have a flat which is jointly owned by me and my wife. If I sell the flat and transfer the amount to the account of my parents who have now no source of income so that I can reduce my tax liability is it allowed legally.They had provided us with initial capital required for buying the flat but I have been paying the EMI for 10 years. the l balance loan amount will be prepayed and the loan closed.The flat was bought for 60 lakh in year 2009 and selling price of flat is 1.15 crore 2022.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

28 April 2022 It's legally allowed being close relatives.
No capital gains tax payable on sale of flat as indexed cost is more than sale value.
No tax also in case of funds given to parents.

AJITH PARAKKA

AJITH PARAKKA (Querist)
Follow

28 April 2022 Thank you so much sir. if you have time can you please share what is the indexed cost of flat as on date. also I had taken loan so I had payed the builder from loan taken from bank which I am paying back as an EMI.Does indexation can still be applied same way

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

28 April 2022 It's 138 lacs
60÷137*317.

Yes, indexation still applied.

AJITH PARAKKA

AJITH PARAKKA (Querist)
Follow

28 April 2022 Thank you so much sir

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!