My father has sold a piece of land and now wants to save capital gain tax. Can I sell my flat to my father under sale deed to get the capital gains benefit to my father?

Ans: Hello, yes the liability of tax can be shared by both. If the income is coming in your account, you can pay the entire amount of tax and then split the remaining with your brother.

Ans: 01. Since you have sold the flat in May-2024, applicable LTCG tax would be @20%, with indexation.
02. You are liable to declare LTCG in your ITR & pay tax accordingly.
03. Exact tax amount payable by you can't be calculated in absence of detailed info about your Income from all sources & Tax Savings etc.
04. you can gift your son this sale amount, who may utilize the same in a way he likes.
05. If your want to save your LTCG, you should have purchased the new flat, may be in the name of your son. In this way you would have been entitled to exemption u/s 54. There are some tribunal decisions, which have confirmed that property purchased in the name of Spouse, son or daughter (Lineal blood relations), is eligible for exemption u/s 54.
Most welcome for any further clarifications. Thanks.

Ans: 01. I request you to clearly mention the details. When was the plot purchased, against which you took loan & now you want to repay the same ?
02. You are entitled to exemption, if you purchase a house, before 1 year or after 2 years, of sale of flat. In case of construction of house the time limit is 3 years after the sale of flat. This 3 year limitation is for completion of construction of house. When you start the construction is immaterial.
03. You may claim exemption u/s 54, subject to the condition that you complete the construction on the plot within 3 years from the date of sale of flat.
Most welcome for any further clarification. Thanks.

Ans: No Capital gain will be applicable if the plot is purchased with the view for construction of house for residential purposes on the same as per the time limits allowed Under section 54, else you have to pay Long term capital gain.