Buying flat for my brother

1) When you pay directly to builder and can proove the beneficial ownership of the flat together with the proof of transaction, any income from the flat will be charged in your hands. or any deductions will be allowed in your hands and any capital gains will also be charged in your hand if you sale it later on.

2) The legal documents bearing name of your brother will entitle him to be the legal owner of the property. He can sell it, mortgage it, transfer it, execute any deed  regarding flat. However, the incidence of income or loss will be borne by you if condition as given above in point 1 exists.

3) If you prove the beneficial ownership of the flat together with transaction, tax authorities will ask for the source of your income and not of your's brother.

4) Note; your query may be dealt otherwise if you can further explain the purpose and objective of such transaction.

u can just gift him the money, draft a gift deed so that ur brother is not under the microscope of tax department.

agreed raghavan....irrevocable transfer is imperative or else clubbing provisions can apply...

Thanks for your replies and these are of quite useful to me.

I want to further clarify that  since I am already taxed in higher slab  I want to show this transaction as my brother's fund but just want to ensure that tax authorities shall not ask my brother about source of funds since as per his IT return his income is very low. 

Thanks for your responses....it was very useful.

Please reply urgent.....thanks in anticipation

Vikas

Gift from family is exempt....that is why u need to draft an irrevocable gift deed as i said in the earlier comment..

hope this is helpful