I have two parts to te query:
1) My mother has an residential flat that she wants to sell and buy a new one. However the cash realised from the sale of the residential property will not be sufficient to buy a new house and I will have to top it up by taking additional loan. Will my mother get exemption u/s 54 for LTCG only if the new flat is registered in her name or the name of registration does not matter as long as the sale amount is ploughed back into another residential property?
2) Say the new residential property is registered in the name of my mother only although I have taken loan for the property as well (in addition to the sale amount from another residential property sold). In such a case, can I show that I am paying rent to my mother for staying in that house?
CAclubindia
