Sale of flat

Dr Ashish Banerjee (Querist) 29 March 2017 This query is : Resolved
I am Govt employee and my wife is a school teacher in a renowned school at Lucknow. She is a owner of a 700 BHK single bedroom flat at Tingrenagar, Vishrant bari, Pune. The flat was financed by my father in law. However, my wife is the owner of the flat.
Due to some financial constraints in the family, my wife wants to sell off the flat and give the sale proceed to my father in law. However, at this point I would like to know the following;

(a) Can my wife transfer the property to her father now so that senior citizen benefit will accrue to my father in law and in that case how fees for transfer of property will be calculated? Registration and mutation of the said property is complete.

(b) In case the property can't be transferred now, how much tax on the sale proceed does my wife would have to pay and within what period? Can this money be paid out of the sale proceed of the house directly? At what rate tax will be deducted in her case?

(c) Would she be required to show her source of income at the time of acquiring the property during selling of the same?

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Adv. Yogen Kakade (Expert) 29 March 2017
Dr. Banerji,
It is a good decision of your wife to help her father in need and even you are supporting such cause.
A) Your wife can transfer the flat to her father. In such case Gift Deed shall be the better option for you as to save some charges towards the stamp duty and registration. You shall have to register it at the Subregistrar's office of Heveli.
B) Taxes shall be applicable after the transfer proceeds. It depends upon the amount of consideration if you are willing to transfer through sale deed or in your case deed of assignment.
C) No.

Adv. Yogen Kakade
Email: juryconincorporation@gmail.com
Web: www.juryconn.in Phone: 020-65248888 / 09225510883

Rajendra K Goyal (Expert) 29 March 2017
Agree with the expert.

Dr J C Vashista (Expert) 30 March 2017
I agree with the expert advise of Mr Kakade.

She may gift the flat to her father

She may sell it off to any one including her father

and

pay stamp duty + registration charges as applicable in the State.

For tax saving post your query in CA Club or seek consultancy from any Chartered Accountant.