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Payment of short term tax to transfer joint ownership to soleownership
11-Mar-2023 (In Property Law)
I have sold flat which was co-owned by my mother along with me in Oct-2016 which I took in June 2010. From the amount I took another property within 5 months again on both me and my mother name. I have got my loan approved, new agreement mortgage to bank and also one disbursement is done to builder. Now I want to make a registered gift deed agreement(I required this to withdraw amount from PF) which will transfer the ownership of my mother on my name so that I become the sole owner. I just called bank to inform about this and they are telling that you need to pay the short term capital gain as you are removing your mom name. My mom is senior citizen and non working, Do I need to pay the tax on behalf of my mom? Does the registered gift deed agreement will have any impact on bank disbursement to builder ? What is legally correct to do in this situation?
There is no special treatment while taxing capital gain income of of an senior citizen. except of getting higher slab of initial exemption as provided by Finance Act 2013 Ie Income up to Rs 2.5 lac is exempted in place of Rs 2 lacs. 2] If funds in the investment has come from yourself alone and name of mother is added only as joint owner then entire capital gain will be taxed in your hand and if your mother has contributed her share of investment then it will be taxed to the extent of her investment. If you have taken loan for purpose of purchase of said property and while computing taxable income in your case, you have claimed as deduction interest paid on loan then property is purchase in your name as per income tax record . If Property is given on rent then if you have included entire rent income in your hand then also capital gain will be taxed in your hand only.
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Adv. Siddhant Sharma
Delhi | 500+ Answers
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