Mother owns a BDA residential land in Bangalore for the past 10 years. She wants to buy a new property and fund the same by selling this piece of residential land. I believe she need not pay any income tax on capital gain she received from selling the Land as she is using the same to buy an other residential property. Please correct me if i am wrong.
Now the problem is she wants to register the new property in her sons name. So we are looking at different options to do so and also not being legally obliged to pay tax for the capital gain.
Option 1: Gift deed the existing land to Son and then sell the land immediatly, so that register the new property in sons name.
Option 2: Buy the new property in Moms name and then gift the same to son.
Option 3: Need not pay tax for the capital gain under family tax, as the new property bought will be by an immediate family member.
Kindly suggest the pro's and cons of each of the option or any other options if any.
thanks in advance.
