Section 54

It is possible that you sell the house in name of mother and purchase the new one in name of your brother since the purchase is in name of realted person.

Refer the case law: CIT vs. Kamal Wahal (Delhi HC) (2013)

Property can be purchased in the name of the spouse, but I have not read any caselaw where a property can be purchased in the name of a son/daughter.

If you purchase the new property in joint name, mother and son, then the mother can claim exemption upto the amount invested, and the son may claim principal/interest on home loan upto his share in the property.

Hello Mihir, Warm Regards. I would like you to go through the case law mentioned by me (Kamal Wahal). Here the court has mentioned that, Section 54F in terms does not require that the new residential property shall be purchased in the name of the assessee; it merely says that the assessee should have purchased/constructed "a residential house". It also noted that a purposive construction is to be preferred as against a literal construction, more so when even applying the literal construction, there is nothing in the section to show that the house should be purchased in the name of the assessee only. With reference to above verdict, assessee can purchase the residential property in name of other person, provided it is funded by teh assessee.

That is why i am a bit confused. And what kind of documents would i need to prove that she have contributed the amount in buying a house as the name would not be mentioned.

Ritu, you can you either cheque or DD to make payment and if possible use net banking from your mothers bank account. Ensure that money is deposited in teh same bank account so that in any case your can prove the trail