Background: Mother sold inherited house property . She wants to invest the capital gain amount in new house. The amount over and above the capital gain is to be invested by Son. Son is going to take housing loan from bank.
Questions:
1. Can mother claim exemption from capital gain?
2. Can son claim deduction for interest on housing loan and for principle repayment?
3.Whose name should be the first one on property to avail the maximum benefits- mother or son?
U/s 54 any long term capital gains arising on the transfer of a residential house will be exempt from tax if the assessee has within a period of 1 year before or 2 years after the dae of such transfer purchased a residential house.
U/s 24(b) interest on borrowed capital where the property has been acquired, constructed, is allowable as deduction.
It depends on the family constitution. It is better to put the son's name on the property to avoid succession clauses subsequently.
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