My friend’s mother has received sale proceeds from the sale of her ancestral property(purchased in 1986, sold in Apr 2018 by son) wherein she has got her share along with her 3 other siblings. Although all 4 siblings have equal right in the property but as per the sale deed, my friend’s mother has taken less amount in comparison to her share and the cheque details are mentioned in her name of the actual amount received by her in the sale deed.
So here interrelated queries are:
1) Will this transcation attracts LTCG on my friend’s mother?
2) Can she claim TDS deduction while filing ITR as it is reflected in her 26AS?
3) If LTCG applicable here, so to save LTCG she is purchasing a house jointly with her son in law who is married to her sole daughter(friend)(son in law will take home loan for his part). is this transaction allowed?
4) To save LTCG and get home loan also, is it neccessary friend’s mother as first owner, or she as co-owner will be sufficient?
5) what all things to keep in mind to save LTCG and also take benifits of home loan tax exemption?
6) is it necessary to add daughter(friend) in the property agreement and loan agreement?
7) Is it necessary to define the percentage of share of holdings in the agreement to prove that the friend’s mother has invested all his sale proceeds?
8) whether the mentioning of share will have any impact on son in law on claiming tax exemption of interest on loan u/s 54 also similarly any impact in principal amount u/s 80C as investment?
Thanks in Advance.
- Yes, if her income is less than basic exemption limit.
- Yes, but the claim is based on the proportional ownership on the property.
- She can be co-owner also.
- % of ownership in new home is the main thing you have to keep in mind.
- Not necessary.
- Yes, because based on that she can claim the proportionate % of tax benefits.
- He can also claim tax benefits based on the % of ownership he is holding.