Investment of sale proceeds of property in sons name

Tax planning 853 views 2 replies
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Service
52 Points Joined October 2008

Hi

     My aunt ,a widow sold property in her name. After calculation of capital gains etc she has paid the appropriate taxes.

She now wants to invest the remaining amount in property in her sons name rather than her own name as she is old and in ill health.

Questions

1. Can the sale proceeds after paying taxes and filing the return of income be invested in her sons name

2. Is there a need for a written document e.g. gift deed or NOC from her so that the investment can be made in her sons name.

3. The son in turn can utilise the above funds and add some of his savings and buy a property (residential).

 

Thanks

Ninad

Thanks

 

 

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On 10 January 2011 at 21:53 Report
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Manager
614 Points Joined December 2010

1.Yes sale proceeds can be invested in the name of the son after the taxes are paid

2. While gifting the money to the son it is always advisable to have a gift deed for backup.

3. Yes the son can dispose off the funds as he wishes.

The amount is not taxable in the hands of the son u/s 56(2) being gift from lenial ascendant

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On 10 January 2011 at 22:31
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Service
52 Points Joined October 2008

Hi

Thanks for the reply

Just a clarification

Does it mean after paying taxes and filing return etc the remaining sale proceeds can be invested in property in sons  name(son is the first holder) without making a gift deed or a gift deed is compulsory

Any details or links on how to make the gift deed etc also welcome

 

Thanks

Ninad

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On 11 January 2011 at 14:57


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