Dear Experts,
My father is farmer in the last years. He is not a tax payer. He plans to buy a property in my mother's name. He has his savings in bank FDs which account for almost 60% of property value. Rest 40% I will be contributing through transfer to father's account. I'm salaried tax payer.
Question 1:In this scenario; if he pays for the property & registers the property in my mother's name, will it be termed as Benami Property ? [IT will get to know the transactions, as we'll be paying 1% TDS]
Question 2: Will my mother [no income] be asked to provide source of income ? Can my father show that those are his savings from agriculture income & it is exempt for income tax ?
Question 3: Do I have to make some gift deeds for transferring 40% amount to father's account ?
Thanks a lot for your answers.
Arjun
