Purchased property in Joint ownership with mother

Tax queries 355 views 3 replies

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?

Replies (3)
  1. No. Not right. Mother or any family member can be joint owner for safety purpose.

In my case then this will not be a banami transaction....right? As I will make the entire payment and will give mother name in joint ownership.

But from seller TDS dedcution point of view, will have to deduct tds from mother PAN as well as she will be a joint owner...right?

  1. Right.
  2. Yes...


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