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Capital gain tax

Tax queries 135 views 1 replies

Me and my father bought an under construction property in Bangalore in 2012, my father as first applicant and me as second.
We both invested in 50:50 ratio.
Agreement to Sell and Agreement to Construction has both my father and me as applicants.
TDS was paid against my father's PAN
Possession was taken in March 2017.
No bank loan.
Property is NOT yet registered.
We want to register the property ONLY in my name.
Builder says it can be done if my father gives NOC. 
SALE DEED will be prepared in my name with my father as consenting witness.
I want to return 50% money( without any profit/interest) given by my father to builder, back to my father before registration so that he can purchase another house in Haryana.
We are planning to purchase house in Haryana on my father and mother's name.
Lawyer says in sale deed itself make a mention that you have paid your father for the share in the said property and as such the property is being registered on your name only.
Other option that lawyer gave, father can execute affidavit that he is relinquishing his share in property and to register sale deed in your favour.
Property was bought and getting rregistered at market rate which is above circle rate.

Will this result in any tax obligation as this is only return of money without any profit or interest?

Replies (1)

As such it can be treated as loan amount to family member (for taxation purpose); and hence it should not create major problem.


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