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Adiyogi S S (Engineer)     24 November 2019

Avoid tax on mother's house sale money

Hi, My mother is going to sell her house in near future. To avoid paying Long term capital gain (LTCG) tax, I will be using that money to buy house in my name. There are few queries: 1. How can I get the money (from house sale) in my name as gift from my mother so that it is not taxed in my hand? 2. Since I will be buying a house in my name using this money (along with home loan), should i be paying LTCG tax? If yes, how to avoid paying this tax?


 5 Replies

G.L.N. Prasad (Retired employee.)     25 November 2019

A competent Chartered Accountant or TAX ADVOCATE in your local area may offer precise guidance on facts of the case as the query may not alone on tax concessions alone and linked to her legal rights also.  In general, the taxpayer should alone use that amount for an alternate house within one year and keep the amount as a term deposit in notified banks.  But the present query includes a gift also when it is gifted, it is presumed that the seller is not investing herself and gifting.

GANDHI MOHAN BHARATI (Pensioner)     25 November 2019

Whichever way you look at it you cannot avoid Tax. If hopuse is gifted to you it will be taxedin yourhand on your salebesides expenditure on registering a gift deed. Be a good citizen and pay the taxes.

Dr J C Vashista (Advocate)     26 November 2019

Feel proud to pay tax.

Adiyogi S S (Engineer)     26 November 2019

Hi all, Thanks for all your reply. I am not here to cheat the government as some people have assumed. I am trying to see the options within the current tax laws to avoid paying this tax. As Mr. Prasad(thank you) mentioned, I know that the tax payer(Here my mother) can avoid paying tax if she buys another property in her name. But here I want to know whether any legal options are available to avoid paying that tax if I use this money to buy property in my name. That is all.

Please let me know if there are any legal options available.

GANDHI MOHAN BHARATI (Pensioner)     26 November 2019

Tax planning is good but tax but tax evasion is bad.

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