Property buying for father


I sold a property recently (registered on my name). Now i want to re-invest that money in other property. The property we are looking at will need additional amount which my father is investing. I want to get the new property registered on my father's name by giving the amount of my sold property.

I am seeking guidance if i can give the money to my father for buying the new property without any tax issue?

 
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Lawyer in Hyderabad.Email:ramachary64@gmail.com

 the entire gain amount must be claimed on your taxes in the year the property is sold. In my opinion Paid by cash to your father is taxable.

 
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Is there a way around so that i dont pay tax on re-invested money?

 
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Hello,

Besides giving money why don't you buy and gift him from that you can also get the idea of the properties...

 
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Advocate

Buy the property on joint name or take the loan from father and buy the property.

 
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Gifting to father also has a tax liability. I read it somewhere.

 
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I couldnt understand 'loan from father'. Is there a process of doing so?

 
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Advocate

You can take loan from father there is no legal bar.

 
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Practicing Lawyer

Dear,

Regarding your undermentioned query,

 

I sold a property recently (registered on my name). Now i want to re-invest that money in other property. The property we are looking at will need additional amount which my father is investing. I want to get the new property registered on my father's name by giving the amount of my sold property.

 

Ans : First determine whether the property you have sold results in any capital gain, short term or long term. If it results, have you or are prepared to discharge your liability. Now having discharged your liability, you are now free to invest the money in your hands as you wish including buying property jointly with your father. In case u wish the property to be registered in the sole name of your father, you may advance the amount as loan to your father, who in turn along with the funds available with him buy the property in his name.

 

 

 

 

I am seeking guidance if i can give the money to my father for buying the new property without any tax issue?

 

Yes one can advance loan to his father and there is no taxation issue in it, but of course, later or sooner, you father has to refund the same to you.

 
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