Ltcg 54f exemption

nitin (CA Final student) (75 Points)

19 May 2016  

Mr. X (Father) sold house property & LTCG is approx. Rs. 53,56,726 since CII is not declared for FY 2016-17 (I assumed 1100). So approx tax amt will be Rs. 10 lacs. (Pur. amt 1,00,000 FY 92-93, SP 58.5 lacs)

He don't want to invest in any bonds or CGAS or buy a new property since he require money.

 

My Query:-

1) Mr. Junior (Son of X) have a property in his own name purchased in 2011. Now can Father purchase a house from his son, make /agreement , pay stamp duty  & claim exemption. is it valid?......if yes then son will pay tax arnd 2 lacs (assuming son purchased house for 40 lacs in 12-13), pay stamp duty on transfer arnd 50,000. ultimately save tax arnd Rs. 7,50,000.

                              OR

2) Can father become co-owner in son's property by paying loan installments of Son's Property & claim exemption.

 

Plz guide sir.....I was reading past cases on this, not found till this Posting.