House property

Your Father Should Pay Capital Gain Tax.

For you, House Properties except One House Property will be Deemed to be Letout and will be taxed accordingly.

Agreed with Manjunath

Instead you can do Following Transactions (If Old Property is Residential House)

1. Take Old House Property as Gift from Your Father.

2. You Sell the Property

3. Buy Residential Property in your name within the time limit u/s 54

4. Avail Tax benefit u/s 54.

(For details refer Sec 54 of IT Act)

You are saving Capital Gain Tax. But Deemed to be Let out Provisions will apply according to Previous Thread.

Can my father take benefit of Section 54 if my father sale his self occupied property and buy new house in my name ? and I have already a one house peoperty in my name.

Can my father take benefit of Section 54 if my father sale his self occupied property and buy new house in my name ? and I have already a one house peoperty in my name.

Agreed with Deepak.But 1 more thing is that if u fail to buy the residential house within the time as specified under section 54 then u can deposit the amount in capital gain A/c with any scheduled bank to avoid tax arising from capital gain income.This will give u extra time to purchase residential house.

Dear Deepak & Karan,

If the property is bought in the name of the Son, how to Substantiate the investment of Capital Gain of Father ?

Father's name will not appear in Sale deed. Right ?

Dear,

Benefit of exemption is availed by only assessee it means here your father is assessee not u.

to be eligible for claiming exemption, the new property purchased should be in the name of the same person in whose name the property was sold..

Mr. bikas as per your question you have get partial knowledge about your quetion becouse U/s 54 will be availabe only in two cases 1) if you have purchased a new house 1 year before or willing to purchase or cunstruction within 3 years from the sale of the house. 2) deposit in capital account ( i.e open anew account in any nationalised bank for this purpose) on or before 6 months of due date of filling or return of filing, wichever is earlier.

@ vikas

There is no restriction regarding on whom name ,the purchase should be.

The Delhi ITAT recently decided in a case that if the payment for purchase of new house is made by the assessee,the eligibility for availing the deduction is satisfied,merely because the title deed contain the name of another person,it cannot be denied.

So ur father can purchase property in ur name

Varalakshmi,

Please provide the Case Law.

As I know, you may be referring to Balraj v CIT 

Facts of this Case is completely diferrent.

In the sais case the fact was that, the Assesee entered in to agreement to purchase the Property but it was not registered in his name . . .

Let me know u have any other case law ?