Selling land on mothers name and buying house on my name

Querist : Anonymous (Querist) 18 July 2022 This query is : Resolved
Hi one of land is on my mothers name and she is selling it. To avoid capital gain tax that amount need to be reinvested in other property within 2 years as I know.
So is it possible if I buy a house on my name and she pay for it.
Will capital gain tax applicable here?
Or what other options are to avoid capital gain tax.

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A user is asking if they can avoid Capital Gains Tax when their mother sells land and they subsequently purchase a house in their own name. The general consensus is that reinvesting the proceeds into a property solely in the user's name will not absolve the mother of her Capital Gains Tax liability. The recommended approach involves the mother purchasing a new property in her name first, with gifting or bequeathing options available later.

kavksatyanarayana (Expert) 19 July 2022
No. But it is not a legal query. Consult a local CA.

P. Venu (Expert) 21 July 2022
Purchase of property in your name, in my understanding, would not take take care of the mother's liability towards capital gains tax.

The viable option is that she purchase property in her name and subsequently gift or bequeath same, if she so chooses at her discretion.

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