Should I pay taxes on selling my flat and constructing a new house?

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: If person acquire house property in FY 2014-15 in Rs.32,50,000 and transfer it in FY 2023-24, indexed cost is likely to be Rs.47,12,500. Thus, on difference amount (65 lacs and 47.13 lacs), long term capital tax @20% will be charged. You can calculate exact tax amount through income tax calculator available at https://incometaxindia.gov.in/Pages/tools/indexed-cost-of-acquisition-or-improvement.aspx

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.