tryinghard (Self) (48 Points)
16 February 2012My father has a house that he wants to sell (House A). i want to buy a plot . Value of Plot is higher than house the house. Can I buy the plot now and when my father sells his house we can construct the house and LTCG on his house be used to construct the house on the plot. Will he get the LT benefit for investing in a residential house. asumming the plot is named under me.
Will the answer changed if I am the primary owner of the plot and my father is the secondary owner?
Please advice.
CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 19 February 2012
It is better to purchase the plot in joint names.
You may give loan to your father for purchasing the plot also.
.
If you purchase plot in a single name , you have to give a no objection letter to your father for constructing the house on your land.
.
I think the First Option is better.
CAclubindia
