Hello, My father and mother have sold property in Delhi (long term) now wanted to purchase a flat in noida which he want to transfer in my name. Shall we plan purchase of registered property or under construction to avoid addtional burden of trnasfer charge What is best way to achieve same with minimum implication on registry /tax. Regards, Abhishek
1. Well, if they wish to make you its sole or part owner then it is advisable that while purchasing the property they make your name added as co owner of the flat.
2. once your name is added then you will be considered as its co owner.
3. Later of you are their sole legal heir then on their death by law of inheritance you become its sole owner.
4. If apart from you there are many legal heirs then they can purchase this property in your sole name to avoid later transfer charges.
Don’t purchase under construction flat
2) purchase flat in building which construction is completed and OC issued
3) transfer charges are nominal
See first to get the exemption under 54F on long term capital gain from sale of house property the condition is :
The assessee invests the net sale consideration of above mentioned assets to construct a residential house within 3 year of the sale of the asset or purchases an already built house within one year before or two years after the sale of the above mentioned asset.
So now since you have already sold you need to purchase a property within 2 years from the date of such sell or in under construction property 3 years to complete construction.
See now days after ongoing builder buyer disputes delay in project I would suggest to to buy a newly constructed flat in whom OC is received. By flat from builder in such society there will no transfer charge and there will be no risk.
Further adding your father can purchase it in.your name and still he will get the exemption as held by ITAT mumbai purchase of property in name of near family spouse childrem the exemption of 54F is available.
1) Any how if your are going to purchase new property in your name or your fathers name than still you have to pay registration charges.
2) If property is already purchased on your father's name than it can to transfer on your name without registered charges, just transfer of property on legal heirs name.
3) To avoid all complications better to purchase your fathers name and your name as nominee inserted at the time of the registration.
Hello, if any property purchased by my parents and if my name (son) included in property than any tax obligation for me or if it is possible than father purchase property directly in my name than tax liabilty on myself. Property sold in Delhi and planning to purchase in Noida(UP)
There is not much tax liability if the source of income is genuine and your father is not an income tax evader.
No if father is paying all consideration and directly paying then he will get exemption then no liability on you.
If he gift you property after purchasing in there name than there is liability you have to pay tax on gift.
Sir in my advise it is best to directly purchase property in your name and your father will get exemption.
The Mumbai ITAT (Income Tax Appellate Tribunal) has recently held that if someone has made the entire investment for the purchase of a new house, he is entitled to get the full benefit of the income tax exemptions, even if the property has been purchased in the name of a close relative.
If property has been sold by your parents they should purchase property in their joint names to claim benefit of long term capital gains
2) If your parents purchase property in your name only they would not be able to claim benefit of long term capital gains
One cannot avoid paying applicable stamp duty and the registration charges for buying an immovable property by a registered sale deed.
What is your question?
How do you think that you can avoid paying the stamp duty for buying a property under a registered sale deed.
There is no short cut for this.
The property buyer will not have to pay any tax other than the stamp duty and the registration charges at the time of registering the sale deed on his name.
The taxes on long term capital gains or the short term capital gains as applicable shall be payable by the seller at the time of selling the property on his name to a third person.
1) Try to purchase property on your parents and your name will be saved capital gain tax.
Your question: Shall we plan purchase of registered property or under construction to avoid additional burden of transfer charge
Answer: If you are buying under construction make sure that the builder provides you all the necessary documents. Consult a local lawyer/property consultant for your purchase;
Registered property has a perfect title, so maybe you can purchase that.
Whosoever purchases the property with his/her money will have to file returns and mention this property. Also the name on whose the property is also liable to file his returns.
Hello,
there will not be any tax liability on you if the property is purchased on your name by your father.
Regards
Under construction flat gst is applicable.
