Son takes a home loan a year back and it is repaid completely by the Parent. Will the son be taxed on the funds paid by parent on loan closure or the parent be taxed. appreciate if you may clarify with the mentioned case with any other tax be attracted on the transaction.
thanks.
3 Replies
CA Sunil Kumar
(Chartered Accountant)
(4524 Points)
Replied 21 September 2020
Whole amount is exempt from income tax as it will be treated as Gift from parents and exemp u/s 56(2).
RAVIKUMAR PARIMI
(8 Points)
Replied 21 September 2020
Thanks Sunil for your swift response.... one leading question... which also means the property against which the home loan is taken will also be considered as a Gift and no tax is paid on the asset the Son got.
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