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Should I add my mother as a co-owner to reduce LTCG tax?

T S Khurana

T S Khurana   |454 Answers  |Ask -

Tax Expert - Answered on Nov 29, 2024

A certified management accountant since 1993, T S Khurana is a fellow member of The Institute of Cost Accountants of India. His areas of expertise are income tax, specifically litigation cases, and GST.

Since the last 21 years, he has also been providing expert advice on financial matters, including investments and diversification of funds, and wealth building in the long term to his clients.
He believes that investment in real estate is the safest way for better returns and wealth generation over a period of time.

A former chairman of the Chandigarh Chapter of Institute of Cost Accountants of India, T S Khurana has also served as member of its technical committee.... more
Asked by Anonymous - Aug 26, 2024Hindi
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Hi Everyone, I am planning to buy a residential land with funds from my home loan, my father's savings and money redeemed from stocks and mutual funds invested by my mother. Can you suggest a way to reduce liability on the LTCG tax of my mother. As in can we include her name in the property so that she can show full sale amount invested in property to claim exemption u/s 54F and then later on through gift deed withdraw her name from the property so that I become the sole owner which is the end goal.

Ans: 01. Please may plan to purchase the house property in joint name with your mother. She can claim exemption from LTCGs in her ITR.
02. After purchase of property, you may get her WILL Registered in your favor, so that you become the sloe owner of property after her. Even during her life, she can make a gift in your favor.
Most welcome for any further clarifications. Thanks.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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