Scenario - House 1 (H1) is owned by Mother since 2001/2. House 2 (H2) is booked by me (son). H2 is through government scheme, hence there cannot be two names.
Mother wants to help me (sponsor) H2 by selling H1. How will capital gains (LTCG) shape in this case ?
Can you guide on options like;
1. Can mother help me in buying the property as my strength for payment, even after taking loan is not enough ?
2. Is there a need for gift deed of H1 from mother to me and then i sell and exempt the LTCG...
Please guide...
1 Answers
Hi,
To minimise tax implications and also avail exemption on Long term capital gains on sale of property, the ideal route can be - your mother can gift the house on to your name. This is treated as a 'tax-free' transaction.
You can then sell it (Property-1) and re-invest in a residential property (2nd one) and claim LTCG exemption (if any & eligible).
Suggest you to take help of a CA in planning and executing these transactions.
Kindly read :
- Got a Gift? Find out, if it is Taxable or Tax-free?
- How to save Capital Gains Tax on Sale of Land / House Property?
- Can a Mortgaged property be Gifted, Willed or Inherited?
- Sale of Inherited (or) Gifted Property & Tax implications on Capital Gains
- 5 ways of transferring your Immovable (or) Real Estate Property
Thanks Sreekanth,
What would be the stamp duty and other taxes in executing a gift deed ? Considering the property is in Maharashtra – Navi Mumbai Municipal Corporation
Regards…
Hi.. The charges in case of Gift Deed Registration would be very minimal when compared to other forms of Deed Execution. You may visit the respective State Registration Department portal and check for the applicable charges.
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