Selling and Buying a Flat with Changing Owner Sequence: Tax Implications?

Ans: In case of death, legal hair becomes owner of property, unless they surrender their rights in the said property. Please contact consultant for more information.

Ans: 1. A NOC from your mother and brother will certainly help for sale and avoiding future disputes. NOC is a simple process with no major complications.
2. Transferring the flat from you to your mother will entail a stamp duty cost depending upon where the property is located.
3. Selling in your mother's name will increase the slab limit by certain amount so that is better but stamp duty as referred above will be applicable.
4. You can either reinvest in a residential property or NHAI/ REC bonds.

Please take your CAs advice before moving ahead.

Ans: If you're looking to avoid paying tax on the money received from selling the Delhi flat, purchasing the Bangalore flat jointly with your mother could be a viable option. However, there are some considerations to keep in mind:

Ownership Structure: You have the flexibility to choose the ownership structure based on your preferences and tax implications. Both you and your mother can be joint owners of the Bangalore flat, with either of you being the main owner or co-owner.
Tax Implications: When selling a property, capital gains tax may apply on the profit earned from the sale. However, under Section 54 of the Income Tax Act, if the proceeds from selling the Delhi flat are reinvested in purchasing a residential property in India within a specified time frame, you may be eligible for capital gains tax exemption. The exemption is available if the new property is purchased either in your name or jointly with others.
Joint Ownership: Joint ownership of the Bangalore flat with your mother can offer several benefits, including shared responsibility for loan repayment, potential tax advantages, and succession planning. However, it's essential to understand the legal and financial implications of joint ownership, including rights, responsibilities, and potential disputes.
Consultation with Experts: Before making any decisions, it's advisable to consult with a tax advisor or a real estate lawyer who can provide personalized guidance based on your specific circumstances and goals. They can help you navigate the tax implications, ownership structure, and legal considerations associated with the property transaction.
By seeking professional advice and exploring the option of joint ownership with your mother, you can make an informed decision that aligns with your financial objectives and helps minimize tax liabilities effectively.

Ans: Deductions are available for housing loan, if prescribed conditions are satisfied. Also sale of house property will be subject to long term capital gain tax.