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Tax saving

CHAITRI SUDHAKARBHAI KHAROD (ARTICLE) (752 Points)

20 April 2020

Mr A is father and Mr B is son....now Mr A wants to sale his house and also wants to purchase new one.....Mr A is owner of house but he is retired person...suppose sales price is less than purchase price so to pay remaining price Mr B , son wants to take loan to pay remaining amount...

my question is what to do for tax saving when owner is Mr A but loan taker is Mr B?????

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10 Replies

Devil (Confidential) (177 Points)
Replied 20 April 2020

Please first of all you should learn English because from above we can't understand what do u want to ask

2 Like

RAJA P M ("Do the Right Thing...!!!") (127177 Points)
Replied 20 April 2020

No more options for tax saving to both...

1 Like

Shivam RC (Student) (23683 Points)
Replied 20 April 2020

The Initial House Property was registered in the name of Father i.e. Mr. B. Now he is selling it and purchasing a new house property.

As per the Provision of Section 54 of the Income Tax Act 1961, "Exemption is provided to Individual in respect of LTCG arising on transfer of Residential House if the assessee purchases within 1 Year before or within 2 years from the date of transfer , ONE Residential House or constructs within 3 years one residential house in INDIA. "

The Exemption U/s 54 = COST OF NEW HOUSE.

Now, the question is in whose name the new flat is being registered ??? Mr. A or Mr. B ???

If it is registered in the name of Father i.e. Mr. A, then Exemption U/s 54 is available to Mr. A.

6 Like