I am planning to purchase a flat. I want to give my mother name in it as a joint owner. I will be making the complete down payment from my bank account (using my salary income).
For the rest amount, I will be availing home loan from bank for this flat where my mother will also sign as co-applicant in loan document (as she will be a joint owner in this flat).
I will be paying all the EMIs as mother is a housewife. Since mother is a housewife, she will not make any contribution in payment.
We will use this flat as our home(self occupied property).
Will this transaction comes under Benami act? (As I will make the entire payment but purchasing property in joint ownership with my mother. My name will be there in property as joint owner).
I have read that if property is purchased with parents in joint ownership where son is making the entire payment from his known source of income then this is not a benami transaction.....right?
CAclubindia
