Nehru or Indira - who pays the capital gains tax?

*********The year is 2012*******************

Nehru has a daughter Indira . Nehru is 50 yrs old and Indira is 25 yrs old . Nehru decides to buy a house in his daughter Indira's name. 

What is the Property Cost - 25 lakhs

Who pays for the property - Nehru(the proud dad)

How does Nehru pay for the property - by demand draft ,transaction of 25 lakhs was done from Nehru's account.

Who is the property registered under - Indira is registered for the property . 

 

************Fast Forward to 2020***************

Nehru decides to sell the house. 

Sell Price - 30 lakhs

The buyer(Modi) pays the Amount to whom - 30 lakhs is deposited in Indira's account since the property is registered under Indira's name.

Questions :

  1. While buying the property , even tough the transactions was done from Nehru's account ,the property is registered under Indira's name - is this legit?
  2. In 2020 - who pays Capital gains tax(if any) -Nehru or Indira ?  
Replies (4)
Quick Summary
This discussion explores a scenario where a father, Nehru, buys a property for his daughter, Indira, in her name. The key question is who is responsible for capital gains tax when the property is later sold. The consensus suggests that Indira, as the legal and beneficial owner, would be liable for any capital gains tax, assuming there is a taxable gain after indexation.

Irrelevant

@ Sabyasachi what is irrelevant ?

Ideally Indira is the owner...coming to who pays capital gain( there is no gain after indexation) so no capital gain tax.
@ Rahul.....
1. it's legitimate transaction... Father to daughter, relative..
2. Indira Pay LTCG Tax, if any because it's proud daughter, having legal and beneficial right on property.

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