Sir, I am nearing the age of 60, I have sold my 20 year old flat now and investing in a new flat but with my son's name this year itself. Will it attract any income tax issues, since investment is in son's name? Please advise?

Ans: Your father can be at any order in the property holding (first, second, anything…). His contribution in percentage terms will be counted as his share of the property.

Let us say, out of the Rs 71 Lakhs of the sale price, the Long Term Capital Gains is Rs 33.5 Lakhs and that is the one which is invested as his contribution in the new property that you are buying. So he saves complete tax on LTCG, and his share in the property becomes 10% as 33.5L is 10% of 3.35 Crores.

Ans: Amount transferred to mother is a gift which is not considered as income. Income received by your mother on senior citizen FD will be taxable in her hand and she can take deduction of Rs.50000 u/s 80TTB

Ans: Section 54 provides that in case person transfer house property and invest gain amount in acquiring new property, capital gain will be exempt.

Person must buy the residential house property 1 year before or 2 years from date of such transfer of property or construct the house property within 3 years from date of transfer of property.

Ans: Hi Alok
Buying a plot is not considered as reinvestment and eligibility is on buying or constructing a residential house.

In this case if you construct a house on the plot then you could map the capital gains from the sale of the ancestral house against the cost of construction of the house on the plot.

Also, as you have sold the house in March 2023, you would need to open a Capital Gain Accounts Scheme (CGAS) account with any nationalized bank on or before the due date for filing your tax return. The deposit of the capital gain amount in the CGAS account would be treated as reinvestment for the moment.

You need to note that this CGAS account amount has to be utilized for construction within 3 years from the date of sale of the ancestral house.

In case you are not depositing the amount in CGAS account or reinvesting in any eligible assets before filing tax return (of course before due date) then you would need to pay tax on the capital gain portion