Hello Members,
Last June, Me and my brother had purchaced an underconstruction flat each for which we have already done a payment of 95% of the total cost.( We have bought individual flats and are managing our assets and finances individually)
80% of the total payement has been financed by a home loan.
Now comes the query:
My mother holds a plot which was acquired by her. She intends to sell the plot and give the amount to both of us to prepay our Homeloan. To avoid the LTCG tax on sale of this property, we thought of getting the gift deed registration done, where our mother gift the plot to both of us.
Our reasoning is this that once we get the plot as gift, we sell our share and divert the proceedings in our respective home loan accounts.
My queries:
1) Is this Gift deed idea legal in court of law?? Can the mother gift her acuired land as gift (equally) to both of her sons??
2) Will this gift attract any tax on the receivers' hand??
3)Will the proceedings of the gift after sale attract any LTCG tax, considering the proceedings are diverted towards prepaying a Home loan??
4) Does Section 54 specifically say that the proceedings has to be necessarily diverted to buying a property and not to any Home loan??
Note: * This would be the first property bought for both the brothers.
* We have no other siblings.
Thanks in Anticipation
Abhinav
