X an individual wants to purchase a house property. Lets assume the purchase consideration is Rs.20 lakhs. The property has to be registered in X's name. X' father, from his bank account paid Rs.5 lakh directly to the seller. The remaining Rs.15 Lakh was settled by X from his bank account. Can X's father pay directly to the seller In order to fit this transaction as a cash gift ? Will it have any tax consequences?
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Gift income tax
Replies (5)
Quick Summary
He should pay to his so as gift and son should pay to builder. If he takes this amount as loan from father with interest or interest free then father can pay directly to builder
Sir,
Thanks for your reply.
if my understanding is correct, if father pays directly to the builder then it cannot be called as gift?
So in the above case how to deal with the amount of Rs.5 lakh paid by X's father directly ?
Take it as a interest free loan from father to son with proper documentation . Whenever feasible son can keep returning loan with digital payment.
Respected sir,
Thanks a lot
Its on you , how to show in the books of X......... ..
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