Respected CA community
Some very basic questions on parents buying property with their funds for their children above 18 years of age.
- 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 ?
- 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.
- Post registration if the daughter rents the apartment, then does the rental income be showing under parents ITR or daughter's ITR ?
- 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 ?