• Capital gains from property sale

My mother is about to sell her house property worth Rs 1crore 60 lakhs and planning to buy an apartment for the same amount before this financial year ending to avoid capital gains tax.
My question is----Is it mandatory to park the amount received by her on the sale of her property in capital gains savings account or can she put the amount in her existing savings account, because she is going to buy another house property within this financial year and don't want to open capital gain savings account as it is very tedious program.
can she register the new property jointly with me, because she wants to include my name also in the registrar document as Iam her son. If so, what is the tax liability. She will be the first holder and I will be the second holder of newly purchased property, if we jointly register the newly purchased property. Can we do that without any capital gains tax on the property sold by her.
Asked 13 days ago in Capital Gains Tax

If you purchase the new house property before the due date of filing of ITR for AY 2023-24 which would be most probably 31st July 2023 then there is no need to open Capital gain account. You can park the money in your mother saving bank account. Also you can be a co-owner with her. Deduct TDS on purchase of new property subject to the residential status of the seller. 

Vivek Kumar Arora
CA, Delhi
4493 Answers
621 Consultations

5.0 on 5.0

Dear Sir,

 

No, it is not compulsory to open CAPITAL GAINS SAVING ACCOUNT to park the funds received from the sale of house property if you buy another house in the same financial year before filing the income tax or due date for furnishing return of income whichever is earlier.

Payal Chhajed
CA, Mumbai
5175 Answers
244 Consultations

5.0 on 5.0

Hi

 

The money can be kept in normal savings account.

 

Yes, it could be in joint ownership. If she is investing an amount equal to or more than her capital gains, capital gains would be exempt.

Lakshita Bhandari
CA, Mumbai
5660 Answers
817 Consultations

5.0 on 5.0

These is no requirement to open capital gains deposit account in such case.

Lakshita Bhandari
CA, Mumbai
5660 Answers
817 Consultations

5.0 on 5.0

Dear Sir,

No it is not compulsory to open CAPITAL GAINS SAVING ACCOUNT to park the funds received from the sale of house property even if you buy another house in the same financial year before filing the income tax.

 

Thanks and Regards

 

Karishma Chhajer
CA, Jodhpur
2447 Answers
29 Consultations

5.0 on 5.0

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