I want to purchase a flat. I intend to mobilise a part of fund through home loan ,personal saving and liquidation of one of my existing residential plot.
For the liquidation(not sale) of the residential plot , I intend to take refundable security deposit from my father in law which will be interest free. In turn I want to make an arrangement wherein he will have a right to use my flat for residing for a period of ten years.The security will be refundable after 10 years.By doing so my requirement of owning a flat is fulfilled, my in laws requirement is fulfilled at a much lower cost .
1) What will be the tax implication of this arrangement?
2) What documentation do I need to prepare?
