gift deed + tax saving

POSTED BY Pankaj Vasudeo ON February 4, 2013 8:27 pm COMMENTS (5)

Hi there

My  brother’s wife ( my bhabhi) father is NRI and they are well settled abroad

they want to gift some money to their daughter so that she can buy flat 

1. what are they taxing laws if father ( NRI) is gifting money to her daughter and what      precautions needs to be take so that tax can be avoided

2. my brother applied in 1 of scheme of govt in which he got a flat, cost of flat is 30 lakhs and it will be built within 19 months as per govt brochure ( some time they delays upto 3 years or in some cases 4 years). if his wife starting disburse loan to him and if in worse case he gets possession after 3 years then will he be able to claim interst he paid in his incometax return, bcoz i have read some where that after 3 years if you havenot got possession you cant claim it in incometax return

3. is it a good option if my brother takes rs 15 lakhs loan from her wife and gives her interest only so that he can save rs 1.5lakhs life time 

4. is it possible that he transfer 50% flat ownership in her wife name so that he has to pay only rs 15 lkahs interest and not rs 30 lakhs interest bcoz he can only saves upto rs 1.5 lkahs interest

5. or any other suggestions if you guys have please let me know



5 replies on this article “gift deed + tax saving”

  1. Dear Pankaj, the interest on full 30L Rs. can be claimed if your brother decides to put this property on rent. In case of self occupancy, the tax benefit ‘ll be limited to interest payment of 1.5L Rs.

    My personal take ‘ll be to go for full 30L Rs. loan @ 12% ROI. Rest you are already aware, what to do. Incase you want to discuss something specific, please feel free to contact me on my personal mail id.



  2. Pankaj Vasudeo says:

    Dear Ashal,
    he will decide once the project is completed ( its under construction)
    right now we both living in our parental home with dad
    and its a first property on my brothers name

  3. Dear Pankaj, ‘ll your brother live in that flat or ‘ll put on rent?



  4. Pankaj Vasudeo says:

    My brother applied in a govt scheme cost was rs 31 lakhs approx
    now he paid rs 310000 intial amount ( DD) on 19th june 2012
    on 19th july on lottery day he was lucky and his name was in successful persons list
    govt schemes take time and after 6 months he got letter to pay remaining amount as follows

    24 feb 2013 = 465000
    24 may 2013 = 465000
    24 aug 2013 = 465000
    24 nov 2013 = 465000
    24 feb 2014 = 310000
    24 may 2013 = 310000
    24 aug 2013 = 310000

    my bhabhi has rs 30 lakhs gift from her father
    and now my brother wants to save tax ( interest part rs 150000)
    he is in 10% tax bracket ( approx 480000)
    what will be best strategy taking rs 31 lakhs loan from wife and then pay interst to her but then he can only take benefit upto rs 1.5 lakhs
    or just take rs 15 lakhs loan from his wife and pays interest to her
    and transfer 50% flat ownership to his wife

    this type of combo possible

  5. Dear Pankaj, a father can gift any amount to his D’ter. So no taxation issue on that gifted amount. The income generated from this gifted amount ‘ll be taxable in the name of D’ter. Father is out of question. Hope this clarifies the initial part of your query.

    Regarding other queries, I’m bit confused as who is purchasing & who is loaning & who is paying to whom? So please clarify in detail.



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