Basic questions on parents buying property for their major children

Respected CA community

Some very basic questions on parents buying property with their funds for their children above 18 years of age.

  1. Can a parent buy an apartment in the name of their daughter with their funds and get it registered in the name of the daughter ?  
  2. In the above case can the funds for the purpose of buying, registering, TDS and interior decorations  be directed transferred from parents bank account to builder/Vendor or should they be transferred to daughter's bank account and then to the builder's account ?   What is best/good practice in this matter so that there are no issues later.
  3. Post registration if the daughter rents the apartment, then does the rental income be showing under parents ITR or daughter's ITR ?  
  4. Post registration and subsequntly after few years if the daughter sells the property then does the resultant capital gains be taxed under parents ITR or daughter ITR ?

 

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

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