Is there any tax implications in case parents are paying for the house that i would like to buy ?
Example: If the property is worth say 99 lakhs wherein 33 lakhs are paid (sponsored) by parents, 33 lakhs loan is taken by me and 33 lakhs are raised by selling the house (bought by mother in 2001) received through a gift deed from mother.
1 Answers
Hi,
The possible tax implications are ;
Sponsored Money - This can be treated as a Gift hence it is an exempted income. Suggest you to get a Gift Deed executed for this amount and do mention it under 'Exempted Income' section when filing your Income Tax Return for the respective Assessment Year.
Property Sale - Calculate the Capital Gains on sale of property and claim LTCG exemption (if any & eligible)
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