Transfer of immovable property
Subhash
(Querist) 11 March 2014
This query is : Resolved
My father in law is retired . He doesn't have any source of income. He wants to go to his native place so he is offering me and my wife (his daughter) a flat owned by him market value is 1.20 CRs we will be selling our own flat jointly held by myself,my wife,and my father. My query is Can I buy the flat from him at 50 % market value and balance 50 % can he gift to his daughter - If this is the case then what are tax implications for all four of us meaning my father age 90 yrs, my father in law age 70 years ,my wife age 34 years, and myself age 45 years.The flat which is jointly owned by us was bought for 27 lacs in 2008 at mumbai kandivili,which is going to fetch us 75 lacs Stamp duty ready reckoner value for the flat to be gifted is 1.20 Crs. We are getting 75 lacs for our house which we will give to my father in law so he can lead a decent peaceful life
ajay sethi
(Expert) 11 March 2014
your father in law can execute gift deed bequeathing 50%share in flat to his daughter .
he can sell 50%share in flat to you by sale deed . for tax implications consult your CA
Rajendra K Goyal
(Expert) 11 March 2014
You have to pay capital gains tax on the flat to be sold but if you are purchasing the 50% portion of the flat of your FIL it can be saved as proceeds applied in purchasing another flat. Your FIL can gift 50% share to his daughter. On the rest 50% (to be sold to you)share provisions of Capital gains tax would apply. Please consult a tax consultant for calculations. Stamp duty on sale and gift portion would have to pay.
It is advisable to hire services of professional to save maximum tax legally.
Subhash
(Querist) 16 March 2014
IN this case will my FIL have to pay any tax
