Tax implication on sale and purchase of a joint ownership pr

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This query is : Resolved

Saurabh Kumar (Querist)

11 May 2018 My father has a property which he has recently sold. My mother is a co-owner on the property.
We plan to invest the proceeds of this property to purchase a bigger and more expensive house. However to purchase a bigger house I (the son) wishes to take a loan. I would be paying off the entire loan
I wish to know how to go about this transaction such that it ensures that my parents don't have to pay any capital gains tax on the property sale and I'm able to get the income tax benefits on the interest components of the the loan that I take to purchase the bigger house.
Also note: My mother would be one of the co-owners of the new house as governments gives a 1% discount on registry fee for women co-owner properties.

C.A. Umeshkumar Acharya

C.A. Umeshkumar Acharya (Expert)

12 May 2018 For claiming deduction from capital gain on sale of house property , the most important thing is that the new property should be purchased in the names who sold the property. so your parents name should be there when you purchase a new property . you should add your name also as coowner in new property other wise you will not be able to claim deduction of Int paid on self occupied property. So far as the payment of loan is concerned as you are the only person who is going to make repayment only you are eligible to claim available benefit under it.

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