My mother has rs.14,00,000/- in a capital gains account ( property sold in 2008). This is to be invested in a new apartment to be purchased, the total cost of which is about 75,00,000. The loan will be applied by for by me and my husband. Some of the banks we have approached do not want my mother's name on the property title. They want only the name of the payer of the EMI. I am an only child and so my mother has no problem in transfering this amount to me now or later. If it is gifted, does capital gains tax have to be paid on the amount?
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Capital Gains Tax
Replies (3)
Dear Mam,
If property which was sold in 2008 -
Case 1 - consist of Land only {i:e exemption was claimed u/s 54F } - then New House should be in the name of ur mother either absolute or in Joint ownership with you & your Husband.
Case 2 - consist of House, Land & Building both {in other words exemption was claimed u/s 54 } - then the above condition of having ur mother's name on the title is not necessary...(but it is advisable to go for joint ownership)
Further any tranfer of money or property by ur mother to u or to ur Husband is not taxable....
I would say go for Joint ownership & just try to convince ur Banker that mother will be one of the Joint owner only for Taxation purposes....
Amir you have pretty well answered the query but from what I read her query is if that if the money lying in Capital Gains Account Scheme is gifted and not invested, is it taxable was her question (Sindhu Correct me if wrong)
Yes incase the amount is used for any other purpose other than buying a house due capial gain would have to be remitted... for sure
Ms.Sindhu, Mr.Amir and Mr.Nicky
Sindhu's question is correctly explained by Mr.Nicky.
Best Wishes
Sathikonda
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