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Ltcg residential property

Tax queries 249 views 1 replies

Mr X had purchased residential property in 2004. He also owns another residential property in another state.
He wants to sell one of the property and buy 2 residential property for his two sons. How can LTCG tax be avoided?
Cost : 30lacs
Cost  with indexation: 80lacs
Sale price : 2cr

Can he buy one flat along with son1 as co owner ( Father pays 1.2cr of capital gain) rest by son.
Can remaining 80lacs be used to buy another residential property along with son 2 as coowner?

Does above transaction involve any capital gain tax for son or father?

How can situation be best managed?

Replies (1)

Ideally, Father should reinvest in new residential flats ( preferably joint flats) and avail section 54 benefit.  (Check with some settled Court decisions for purchase of joint flats for clarity) Later on, after completing the required holding period, divide flats execute  and register gift deed in favor of  sons!

 


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