Basic questions on parents buying property for their major children

1. Yes, allowed.
2. Second one ...Best option
3. Doughter's income.
4. Daughter's.

Parents buying property for children above 18:

• Funds from parents to an adult child are an exempt gift (relative). The child is the owner; future income (rent, capital gains) is the child's, with no clubbing for adult children.

• TDS under 194-IA is deducted by the buyer (the child) if the price is Rs 50 lakh or more. Keep a gift letter.

Yes. A parent can fund the purchase of an apartment registered in an adult daughter’s name. A genuine gift of money to a daughter is generally not taxable in her hands under the relative-gift rule; retain a gift declaration and clear bank-trail evidence. Paying the builder or vendor directly from the parent’s account is not, by itself, a reason the property must be taxed as the parent’s. The sale deed and actual ownership should clearly establish the daughter as owner.

• Payment practice: Direct payment from the parent to the builder/vendor is workable and often simpler than routing funds through the daughter. Keep the allotment and sale documents, payment schedule, bank statements, gift declaration, and invoices. For TDS, the buyer named in the transaction should comply under the applicable provision; where the daughter is the buyer, ensure her PAN and the correct buyer details are used in the relevant filing/payment. The applicable TDS treatment depends on the transaction and threshold.
• Registration and interiors: Pay registration charges and interior costs directly or through the daughter, but preserve receipts and records showing who paid and whether the amount was gifted or reimbursable. Interior expenditure may be relevant to cost records on a later sale, subject to supporting evidence and tax rules.
• Rent: If the daughter is the genuine owner and receives the rental income, it is generally reported in her ITR under house-property rules. The parent’s funding alone does not ordinarily shift that income to the parent.
• Sale: Capital gains are generally taxable in the daughter’s hands as owner. Keep purchase, improvement, and sale-cost evidence. The position can differ if the arrangement is only nominal, ownership is jointly held, or the facts indicate a benami arrangement; ensure the documents and conduct reflect the genuine transaction.

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