Transfer of my property to my son

Save Share

This query is : Resolved

Quick Summary

A senior citizen in Kerala is seeking advice on transferring their property to their son to avoid significant capital gains tax for both parties. The son has already incurred a short-term capital gain from selling equity shares, while the property transfer would result in a large long-term capital gain for the parent. The discussion explores options like gifting the property or a genuine sale, with advice suggesting that while gifting avoids immediate tax for the parent, the son would still incur capital gains tax upon selling. A registered sale deed is also presented as an option.

V Devan

V Devan (Querist)
Follow

03 February 2023 Dear Experts,
I am a super senior citizen, kerala state pensioner having pension approx. 3.50 lacs per year.

I have a property in palakkad/kerala(seven cents including a house in it) including a house I bought in 2010 for Rs.nine lacs and at present I have buyers for a minimum amt of seventy lacs for the same property.

My son recently bought a flat for seventy lacs. He utilised the amount by selling his equity shares holding with him worth of the same amount of seventy lacs.
Now whether I could avail any tax exemptions if I wish to give my property to my son. The problem is he has a STCG of seventy lacs in equity selling in 2022-23 FY, and if I sold this property, I will also have a tax on 70 - 09 = 61 lacs profit in property selling.
Considering these, whether he or me could transfer the property to avoid huge tax burden to both of us? Whether he or I could gift it as a solution on this? Please advise on this.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

03 February 2023 1. He has already STCG on his equity selling. & if You also sell house property, you will get LTCG.
So, no question of any adjustment in both the gains.
2. Even if you gift it to your son, you can save LTCG, but when he sells it, it will be same LTCG, over his account. Unless there is capital loss in any other sell/transfer, question of adjustment does not arise.

Message likes : 1 times

V Devan

V Devan (Querist)
Follow

04 February 2023 Thank you Dhiraj Sir,
In that case whether my son could buy my property, as a genuine buyer .....?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

04 February 2023 Yes, with registered deed.
Also gift deed can be made, if you wish. In that case you won't have LTCG liability.

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