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Should I Use My Father's Property Sale Proceeds to Close My Home Loan?

T S Khurana

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Tax Expert - Answered on Sep 30, 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 28, 2024Hindi
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Money

My father sold a property which was under his name for some amount. Can his son use that money to close his home loan? Will my dad have to pay tax?

Ans: 01. You Dad has to pay Capital Gains Tax on sale of property.
02. Your Dad can gift you a certain amount & then you would be at liberty to use the same money for any purpose, including repayment of your housing loan.
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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