Hi,
There is a house in the joint name of my brother and Mother Now If the same house is sold and a new house is purchased in my name and mother what will be the tax implications on the same and can how can one save tax on it ..
CA Vishal (CA working in industry) (620 Points)
05 October 2009Hi,
There is a house in the joint name of my brother and Mother Now If the same house is sold and a new house is purchased in my name and mother what will be the tax implications on the same and can how can one save tax on it ..
CA SUDHAKAR
(CHARTERED ACCOUNTANT)
(189 Points)
Replied 05 October 2009
What is the share of interest of your brother and mother in the said propety ?
Is it a long term assets, eligible for claiming exemption, by investing in a new residential house property ?
Then, transfer the interest of your brother in the property, to your name, by way of gift deed. Check the stamp duty payable to concerned registering authority, who is registerign the property. In most of the states, it is very nominal, in case of gift of property within the family members. Then, yourself and your mohter can sell the property and invest the proceeds in a new residential house to get the exemption. Then, both of you can claim exempiton. Period of holding of the property by your brother is also considered for the period of holding of the said property.
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