Sell property to son

Dear Querist,

Your father will be liable to pay Long-Term Capital Gains tax on the capital gain, not on the full sale value. The exact tax can be calculated only after reviewing the purchase date, sale date, and other relevant details.

Also, your father need not sell the property. He can gift it to you, which may result in significant tax and stamp duty savings, depending on the applicable State laws. If he requires funds, you can separately gift the money to him, as gifts between specified relatives are exempt from income tax.

For a more detailed review of your case, you may book a phone consultation.

CA Shubham Goyal

Dear Querist,

Please provide the purchase deed showing the purchase date and total cost, along with the proposed sale date, sale price and stamp-duty value.

Also share improvement costs, selling expenses, your father’s other taxable income and any proposed reinvestment for claiming capital-gains exemption.

For a more detailed review of your case, you may book a phone consultation.

CA Shubham Goyal

Dear Querist,

Property improvement cost means capital expenses such as construction of an additional floor/room, major structural alterations, boundary wall or permanent renovation that increases the property’s value. Routine repairs, painting and maintenance are generally not included.

The amount should be supported by bills, contractor receipts, bank statements and municipal approvals, wherever applicable.

For a more detailed review of your case, you may book a phone consultation.

CA Shubham Goyal