Capital gain exemption

Hi,

- Yes but you will be treated as deemed owner in the future in relation to all income of such property.

Thanks

Hi,

Yes, it is possible.

Under the existing provisions of the Section 54 of the Income Tax Act, if a taxpayer earns any income by way of Long Term Capital Gain on sale of a residential property, he can claim it exempt by re-investing the amount of capital gain in purchase of another residential house. The law provisions require the seller to reinvest the gain amount within the stipulated time and there is no specific requirement that he himself should be the legal owner of the reinvested property.

Yes it can be done.

Hi,

Yes, it is possible.

This is a litigious point and may involve some dispute with tax authorities.

Section 54F of the Income-tax Act, mandates that house should be purchased by tax payer and it does not stipulate that house should be purchased in name of tax payer. Property is usually purchased by a person in joint name with his wife where the wife is non-earning and entire consideration flows from tax payer.

As a thought and precaution, one can purchase the property in the joint name.

As per income tax one can save capital gain on sale of flat only by investing in another flat in his name or by investing in bonds. So i don't think your father could save tax by investing in property in his son and daughter in law name. It would be better if he invest in his own name and then gift the property to son and his wife.

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Thank you

Hi

Yes, this can be done. On the basis of the investment made, exemption shall be claimed under section 54.

However, father shall be taxable for any future benefits arising out of such investment.

Hi

From exemption point of view it can be done.

But its advisable to take property in joint name instead solely on son and daughter in law name.

Hope it helps.

It's a bit litigation but possible. There are many judgements like this wherein exempt from capital gain is allowed even if investment is made in son's name.

Hi,

- TDS @ 1% needs to be deducted by the buyer if the sale consideration exceeds Rs. 50 lacs.

Thanks

No TCS is applicable on purchase of flat but TDS is applicable @1% on registration above 50 lakh and purchaser needs to deduct it from sale value.

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Thank you.

Hi,

TDS @ 1% will need to be deducted by the buyer since the sale consideration exceeds Rs. 50 lacs.

Regards,

Nikhil

Hi,

Hope you are doing well !

No TCS (TAX COLLECTED AT SOURCE) is applicable on purchase of property.

Thanks & Regards,

Payal Chhajed

Hi,

No TCS applicable on sale/purchase of property.

I think you mean TAX Deduction at source and not TCS. The buyer has to deduct TDS @ 1% of the total sale consideration. No TDS is deducted if sale consideration is less than Rs 50 lakh.

TDS is applicable on Property Transaction of 50 lacs and above. The buyer shall deduct TDS @1% under section 194IA at the time of each payment.