Hello Respected Sir/ Madam, We recently sold my fathers property, for which we are planning to invest in another property to save capital gains tax. My father has been bed ridden since his last cancer treatment. He is currently very weak and unable to move or even write. Since his condition is critical. It was suggested was to invest in property under joint ownership under my father and my name to save capital gain tax. Seek your expertise! 1 - Will investing in a new property with joint registry help save capital gain tax? 2 - If new property to be bought currently does not have immediate registry or Occupation Certificate available what documents could be attained from builders/seller to save property tax. 3- Since my father is immobile what all documents will be required besides POA to help complete purchase of new property on his behalf. Any other key pointer if missed, kindly highlight. Regards John
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It should help in saving long term capital gains tax
2) builder should enter into agreement for sale for sale of property to you . It should mention sale consideration payable and amount paid by you
3) registered POA is necessary for purchase of property in his name
4) if he cannot visit sub registrar office approach said office to deputy officer to your residence for registration purposes
1. Yes
2. Any document showing payment and investment with builder
3. POA and sale deed will be required and later completion of registration
1. yes. it has to be stated in the sale deed that all the funds for purchase are provided by your father alone and your name is added as a co-purchaser only for convenience
2. the capital gains have to be invested max within 3 years from date of sale of old property if the new property is an under construction property. you do not need an OC for that. the builder has to register an agreement for sale on receiving 10% of the sale price
3. POA and his ID proof like pan and aadhaar cards
1. Yes, you can go for buying a new property in the joint name of your father and your name by investing the capital gain your received by selling the property wherein you was not the co-owner and also where you had not invested any amount for buying the new property.
2. The new property should be purchased by a registered sale deed, the other things are not related to the exemption for capital gains.
3. The new property has to be purchased by a registered sale deed either singly or jointly and the same is to be attached as documentary proof for claiming the exemption for LTCG.
Thank you so much for the prompt support, much appreciated. If the new property identified if outside the value of capital gain tax. Could i also co-invest in the purchase of the new property along with my father? Will co-investment in new property by me and my father hamper saving my father's LTCG?
The purpose of granting exemption for LTCG is that the tax payer is investing this amount in a new residential property.
Therefore there's no embargoo or legal infirmity in investing in the property purchased jointly with the close relative.
Thanks for your appreciation
you can invest in new property jointly with your father even if it is in excess of capital gains
it would not hamper your father LTCG
Yes it may hamper it