Capital gain reinvestment in mother's residential house

Only amount invested by you will be considered for exemption. No benefit of amount to be given to mother under capital gain tax. After paying tax you can transfer it as a gift without any further taxation in your mother hand.

If the amount of sale proceeds of your land is invested in the name of your mother, exemption from capital gains can be availed under section 54F.

Hi,

Giving gift will not reduce your capital gains taxes.

Regards,

Nikhil

Hi,

In order to claim exemption from capital gain, you need to either invest the entire sale proceeds into new residential house or need to invest capital gain amount in the specified bonds. If you don't invest some of the money, then you need to pay proportionate capital gain.

However, if you have already invested in the bonds then you can do whatever you want from the balance amount.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

The amount you transfer to your mother, shall be proportionately taxable in case you invest the rest of the amount in any other residential property/ capital gains account scheme/ specified bonds.

However, if you do not invest the rest of the amount as above, the whole of the amount shall be taxable in any case, irrespective of the fact whether you give some money to your mother or not.

No loan amount cannot be repaid to save taxes.

Regards,

Nikhil

No, in my opinion it will not help you to save capital gain tax.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Dear Sir,

No exemption is available for repayment of loan amount and renovation of flat. Law provides exemption only for capital expenditure and not for routine expenses. To avail exemption either you can purchase or construct new house.

No. For the property purchased in 2013 or any renovation on it won't be allowed as an exemption.

To save capital gain tax you have to invest in bonds or residential property.

Gift or repayment of loan is not acceptable for claiming tax benefit.

Hi,

Home Loan and Capital Gains Tax are two different things. The exemption of capital gains tax is available only in case of investment of the sale proceeds for acquisition of new residential property. This can be done 1 year before or 2 years after the date of sale. The investment should be done in the name of seller of the property who wants to claim the exemption from capital gains tax. Repayment of home loan is not covered in this as it is not investment in the acquisition of new residential property.

Regards,