booking of flat

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2010 I have paid amount towards booking of an apartment of rs 20 lacs vide three different cheques one from my son's NRO account and other two from my account. my son is major. now i want to buy the same house in the name of the my company and wanted to release the amount of Rs 20 Lacs from co's account to my son and myself respectively. I am not any director of the company but my son is one of the directors of the company. Please explain the I-tax implications.

CA PRAMOD SARAOGI

CA PRAMOD SARAOGI (Expert)
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24 August 2010 You have two options :
Option I : Ask the Builder/Develope tp cancell the booking and book the flat in the name of the company. The company shall pay the booking amount to the Builder/Developer who in turn would refund the booking amount.
Option II :
You and your son may relimquish your interest in the said property in favour of the company and the company sall pay the booking amount and the premium amount , if any . You and your son would be taxable for the amount of premium received from the company.