We have an independent house registered on my mother's name and we want to avail home loan , but we are ineligible. So, we would like to register property on our relative's name as he is eligible for home loan and take home loan on his name. Later after clearing loan, we will register back on our name. We want to avoid capital gain tax, other taxes if any by buyer our relative, and how to lessen registration fees. Please advice, eagerly waiting for your valuable response. If we do not pay cgt or gst what are the repercussions?
Hi,
We need to discuss this in details over a call with all the facts like purchase value and purchase date of the house, sale value and sale date of the house. What will you do with the loan proceeds etc.
Registration charges would depend upon the state in which the property is situated.
Further, there is no gst on sale of used house (OC received house).
Dear Sir,
Hope you are doing well !!
There are several legal ways to avoid capital gain taxes.
Further, there is no GST applicability on flats having occupation certificates.
We may assist you in entire things & proper planning.
It is advisable to take a phone consultation for detailed discussion.
Hello Sir,
Amount of capital gain would depend upon sale price, sale date, purchase price and purchase date by you. Please share the details with us for exact capital gain calculation.
You need to pay 20.8% tax on capital gain amount.
However, you may claim capital gain tax exemption by reinvesting the capital gains into a new residential house property under section 54 or section 54 EC eligible bonds within the stipulated time limits
Further, Home loan and Capital Gains Exemption are two separate things. You can claim the Capital gain exemption only if you use the money from the sale of the property to buy another house. The purchase of new house has to be done one year before the sale of the house or 2 years after the sale of the house. The property should be bought in the name of the seller. Income tax department is not concerned if you used the sale money for repaying the home loan or not.
We may discuss the issues in detail over a call to discuss to solve the problem and carve out possible ways.
- GST is not applicable in your case.
- If the relative is covered under the definition of relative in income tax then it can be treated as gift and no capital gain would be charged in your hands. Only transfer expenses will be applicable. This type of transfer is treated as revocable transfers and income is clubbed in the hands of transferor.
