Tax saving

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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?????
Replies (10)
Please first of all you should learn English because from above we can't understand what do u want to ask
No more options for tax saving to both...
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.
Ok....thank you
Here no capital gain arises.
sale proce less than cost of new house.

but if SDV is more than 105 % of sale consideration then FVOC shall be SDV 

then CAPITAL GAIN may be arise .

 

* SDV = Stamp Duty Value 

Ok. ..thank you so much
Naveen it's not applicable. SDV WAS NOT QUERY.




chaITRI HOPE U HV GOT THE ANSWER.
Yes I understood ....
You're always Welcome Chaitri


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