Sale of property and section 54

Your plan to sell your apartment to your mother at market value to help her avail of Section 54 deduction for long-term capital gains is permissible under the Income Tax Act. Key Considerations: 1. *Market Value Determination*: To determine the correct market value of the property, you can consider the following: - *Registered Valuer's Report*: Obtain a report from a registered valuer to determine the fair market value of the property. - *Stamp Duty Value*: The stamp duty value can also be considered as a proxy for market value. 2. *Sale Deed and Registration*: Ensure that the sale deed is executed and registered properly, with the correct market value reflected in the deed. 3. *Capital Gains Tax*: As the seller, you will be liable to pay capital gains tax on the sale of the apartment. Ensure that you comply with the tax laws and regulations. 4. *Section 54 Deduction*: Your mother can claim the Section 54 deduction on the purchase of the new residential property, provided she meets the eligibility criteria and complies with the conditions specified in the section. Additional Considerations: 1. *Family Transactions*: While the sale is between family members, it's essential to ensure that the transaction is conducted at arm's length and that the market value is correctly determined. 2. *Documentation*: Maintain proper documentation, including the sale deed, registration papers, and valuation reports, to support the transaction and avoid any future complications. 3. *Tax Compliance*: Ensure that both you and your mother comply with the tax laws and regulations, including filing the necessary tax returns and reporting the capital gains and deduction under Section 54. Consult with a tax professional or financial advisor to ensure that the transaction is structured correctly and that all tax implications are considered.

1. Registered sale deed with stamp duty value as minimum consideration to be received through banking mode will be sufficient for mother's sec. 54 capital gains exemption.
2.  You will be liable to pay capital gains over sell of your HP to mother.