Upgrad LLM

land purchase


Dear Sirs,

 

I am an NRI. I want to buy a land in india and i like to send money to father to purchase the land for himself.  On my vacation time dad will register to me. Please advise any tax problems for both of us.

 

Thank you

Raj 

 
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Advocate

Why do you want to register on your Dad's name and then transfer it to your name, you can register it to your name now itself.

 
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It should be registered in a week time as per the land owner so i am going to register on dad's name. Please advise

 
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Advocate

You can sent the amount as a gift and later receive the land in turn as gift. From income tax point of view there is no problem however you will end up paying more stamp duty and registration charges.

 
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Advocate

1.         its better you open NRE Account (Non Resident of External Account) the same is being transacted through RBI (reserve bank of India) and deposit the amount in the same Account from in the country where you reside and issue a check in the name of your father, this transaction should be considered as In secured Loan in your Father tax return (Concern with your Tax Consultant)

2.         And if you want to buy on your own name then issue the check Direct to your land lord, Builder etc or do RTGS (Real time Gross Settlement) through Bank

3.         According to tax rules if you stay outside the country more than 183 days in one financial year then the income you received is considered to be a tax Free irrespective the gain from India or outside India, and if you reside less than 183 days in abroad then the same income you received will be considered taxable irrespective of gain from any country

 

 
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