Can daughter be protected from tax implications by father

Tax queries 194 views 3 replies

Madhav

Nobody

26 Points Posted on 27 December 2016

Hi,

Many years ago, I purchased a plot of vacant land in the name of my daughter when she was minor, I paid for it and signed as gurdian for my daughter.

Now, My daughter has become major, is married and living with her husband.

I want to sell the land that I had purchased in my daughters name. I have power of atorney from my daughter and will sign on her behalf, I also have joint account with my daughter to receive the sales concideration.

To avoid any tax implications for my daughter, can I provide my pan number in the sale deed instead of hers and/or mention that the sales consideration may be treated as my income as the father or clubbed with my income though my daughter is no longer a minor ?

Thanks for your reply.

Replies (3)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211718 Points Posted on 28 December 2016

"""""""""""To avoid any tax implications for my daughter, can I provide my pan number in the sale deed instead of hers and/or mention that the sales consideration may be treated as my income as the father or clubbed with my income though my daughter is no longer a minor ?""""""'

Simply No.

Madhav

Nobody

26 Points Posted on 28 December 2016

Then how to avoid future tax implications for my daughter becasue I will be receiving the sales consideration in our joint account and spend it as I like.

One way is that she could gift the property to me, before I sell it, is this okay by law ? is there any other way ?

Thanks.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211718 Points Posted on 28 December 2016

Yes, gift before sell or claiming exemption upto 50 lakhs u/s. 54EC, by purchase of CG bonds (lock in period 3 years). There you can save stamp duty over gift deed.