I and my wife hold a DLF flat in new Gurgaon. Conveyance deed yet to be done, however possession taken in Sept, 17. Declared in ITR in AY18-19, My daughter, UK resident with OCI has sold a house in Manesar for 1.55 cr. Transfer yet to be done. Applied for TDS exemption. we like to sell our flat in new Gurgaon to her by sale deed for 1.6 Cr. Initially, my wife will give her loan of 1.65. By this money, my daughter purchases the flat for 1.6 + SD of 5L=total of 1.65 This sale deed is given to IT officer and TDS exemption is obtained. Based on this exemption, my daughter executes the sale deed for her house in Manesar and returns the loan of 1.55 cr and balance loan of 0.1 is returned later. Is it ok from tax point of view? if any lacuna, how to remove that and make it fully compliance.
My wife has also sold a residential plot in Sushant Lok-1, Gurgaon for 2.265 cr. 2 cr received balance yet to receive. My other daughter2 has also sold her house in Manesar for 1.53. My wife and this daughter2 wish to buy a flat in Gurgaon for 4 cr.+0.2 stamp duty Will both mother and this daughter be eligible for capital gain exemption. total investment is 2.3 from mother and 1.9 from daughter2. our current residence is at vasant kunj, which is in my wife's name. My wife retired as prof from NCERT and my both daughters are earning handsomely. Daugher 2 is married. She plans to take loan of 0.5 cr. approx.
Hi
This could be a suspicious transaction.
It would be better if the following is done:
Your daughter sells house in Manesar for 1.55 cr. She then takes loan of .1 cr from you/your wife. Purchases your flat for 1.6 cr. + 5 lac registration costs.
Your daughter can claim exemption under section 54.
However, you and your wife will have capital gain tax liabilities unless you invest the capital gain amount in another residential house property.
Yes, your wife can claim exemption under section 54F and your daughter 2 can claim exemption under section 54.
The new flat could be purchased in joint ownership or even only in name of daughter 2.
However, for your wife, please check the conditions of section 54F. Your wife should not hold more than one residential house property as on date of sale of plot.
Hi,
- I don't think there is any issue subject to proper disclosure and payment of taxes or availing exemption by you and your wife for selling DLF flat in gurgaon. In case of liability in the hands of your daughter she is already possessing lower or NIL TDS deduction certificate.
Thanks
Hi,
- Yes wife can claim exemption u/sF and your D2 u/s 54 subject to the conditions mentioned in both the sections.
- Wife is having two houses in her name - Vasant Kunj and share in DLF Gurgaon. It is better to sell DLF gurgaon before sale of plot to avail exemption u/s 54F.
Thanks
Now there is a bit of confusion for me in the question but from this what I understand is that your wife will sell her one flat in Gurgaon to daughter 1 and using that money your wife will purchase another flat along with your daughter 2.
Now from reading both your question what I get to know is that your wife had also sold a land and I am assuming she claimed exemption u/s 54F and purchased the flat in Gurgaon which you are now selling to daughter 1 in such case the capital gain which was exempted earlier you will now have to pay such capital gain tax.
Now if your wife is selling a flat and investing the money in new one by investing the amount with daughter 2 in such case she will be eligible for exemption u/s 54. Also your daughter 2 is selling her house and investing in new house so she will also be eligible for exemption u/s 54.
The only problem here is if your wife had purchased the earlier flat to claim exemption on capital gain from sale of plot then since she has not kept the house for 3 years she need to pay capital gain which was exempted earlier.
Hope you find it helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Hi,
I think this arrangement is fine. Please ensure that everything is properly documented.
In this transaction you will be liable to pay capital gains tax unless you reinvest in a residential property or in specified bonds. Your daughter can take the benefit of sec 54.
Yes your wife and daughter 2 will be eligible for sec 54F and 54 respectively.
Dear Sir,
Hope you are doing well !
Yes, it is ok provided that documents are properly executed. As your daughter is already obtained TDS exemption certificate,there is no issue in tax liability.
Coming to your question
Yes, your wife and daughter 2 will be eligible for exemption u/s sec 54F and 54 respectively.
Dear Sir,
The arrangement is fine.
Please make sure that the documents are proper. From tax point of view, there is no problem as she is holding tax exemption certificate.
Yes, both will be eligible for capital gain exemption subject to conditions specified in respective sections.
Wife- Section 54F
Your daughter 2- Section 54.