Hello Sir, Hope this mail finds you welI ! I purchased a flat jointly with my father in 2008 for 14 lacs. I am the first owner. My father passed away in 2014. Now I want to sell this flat for approx. 40 lacs. I have below queries : 1) I have 1 brother & my mother, will I have to do some legal documentation to transfer their rights to my name ? What is this process & how much time & money it takes ? 2) Will it be advisable to sell the flat by transferring full share in my mother’s name ( Sr. Citizen) to save tax ? 3) How much will be tax in my mother’s case and also if I sell the flat in my name ? 4) How can we save the taxes ? Thank you in advance

Ans: In case, father gift his share of property to son; cost of father will be added to cost of acquisition of son. Accordingly, at the time of transfer of flat by son, capital gain will be calculated by deducting total combined cost from sale consideration.

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: 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.