Query related to taxation issue involved in property transaction India.?

Question

Dear sir,

My dad has one flat in mumbai where we have been staying for last 8 yrs.Agreement of this flat is jointly signed by him and me (his son).But in society only his name appears since he is first holder. Now due deteriorationg relation with my father after his second marriage,we decided to stay separately and buy two flats form the sale proceeds of this flat.

In one of the flats to be bought I want to be sole owner.Since her second wife may claim this house after his departure and I will be left with no choice but settle her claim.

I want to avoid this situation.I have been enquiring with legal experts and they said the one house can be gifted to you.Dad says both houses can be bought in his name only since if he tranfers one in my name there will be big tax liabilty on him.Later on if he gifts it to me then there will be stamp duty and regn to be paid again.

I want to know what liability will be on me and to him if he buys one flat in my name. thanks.

Answer 1

It seems the present house was bought with ur father's income and ur name  was simply added as a second name.If this is the case and ur dad decides to buy both the flats in his name,there can be no stopping him.He is right in saying that tax liability will come on him and may be on u as well because u will be getting flat for free.Let him buy the flat and then gift it to u.Of course stamp duty will have to be paid again.Still better,show all the details to a professional and seek his professional advice.