POSTED BY February 8, 2013 10:29 am COMMENTS (3)
ONDear Manishji ,
Thanks for giving me the opportunity to learn a lot from your blog.I am in dilemma and i need sincere advise urgently
Question:-My parents are senior citizens and one plot was purchased in
1970’s on my mother’s name and same has been sold now in approx. Rs 35 Lacs
.Now my parents want to construct a home on a plot which is on father’s name with this money.
.My question is what are the formalities need to be done to construct the
residence on plot which is on my fathers name and money will be used from
my mothers account to reduce / exemption from tax liability.Also pls advise
in future if we (3 brother’s) will share this accommodation so how ownership
will come in to picture particularly if we want to give partially it on
rent.
How all points need to take care in present and in future and what all legal paper formalities to be done to gain the benefit of long term tax gain.
Thanks in advance.
Regards,
Vikas Jain
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Dear Vikas, for my personal mail id, either check from my profile or contact dear manish to get my mail id.
As per forum policy, I can not provide my mail id directly.
Here is dear Manish’s mail id – manish@jagoinvestor.com
Thanks
Ashal
Dear Vikas, first of all please use a part of the money received from sell out, to purchase the plot from father to mother. thus the plot ‘ll be in the mother’s name. Now from the remaining money, mother can construct the house.
In the event of death (ultimately) of your mother, if there is any WILL, the house ‘ll go as per her WILL. If no WILL, the house ‘ll be divided between all of you i.e. your father (if he is alive by that time) & all 3 of you.
In case you want to discuss in detail, please write a personal mail to me.
thanks
Ashal
Thanks Mr. Ashish for your reply ,but while transferring plot from father to mother will cost Rs 3-4 Lacs as registry and other charges which we don’t want .Because I think if we total tax liability will be in tune of Rs 6-7 lacs .We don’t want to go through registry route.I also heard that it can be given on lease but it will also attract charges.
May i have your mail id so i can have detailed discussion.
Regards,
Vikas