21 January 2010
My father holds a independent House in Karaikudi (Tamil Nadu).He wants to sell it and with some additional amount [which I am arranging through a home loan] wants to purchase a flat in Chennai.I want to register the flat jointly in the name of myself and my father. Can he avoid Wealth tax and I get Tax benefit together for the same? What are the total tax implications for the above transactions?
21 January 2010
regarding payment of wealth tax you have to give details.
You father can get exemption for capital gains and you can get exemption in relation to investment in flat and payment of interest on housing loan. the new house must be in joint name of both to get the benefit
21 January 2010
in wealth tax sec 5(vi) if your father have only one house then there is exemption from wealth tax. if your father invests full capital gain amount in purchasing new house then he will get exemption in capital gain. if new house will be in joint name then you can take benefit of repayment of loan and interest repayment. But you have to prove that this is paid through your income.
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