Hi Satya
No. This would not provide capital gain exemption.
For claiming capital gain exemption, reinvestment has to be made in new house property; within 1 year before or 2 years (3 years for construction) after the transfer of the old property.
Can father pay son's Home loan to avail capital gains tax exemtion
Sir, My father is selling a 30 year old residential building which he built himself. Me and my brother are the only sons to him. Both me and my brother have constructed separate houses ourself through home loans few years back. can my father pay of home loans taken by me and my brother to save captal gain tax on the sale of is house. Regards K Satya
Asked 6 years ago in Capital Gains Tax
No exemption is available for repayment of housing loan. Father needs to reinvest either in house property or bonds.
Unfortunately, No.
Capital gains cannot be used to repay loans if you wish to get the exemptions.
Regards,
Nikhil
No ,exemption cannot be claimed for paying home loan.
Investment in bonds Or reinvestment in property to be done to save capital gain tax.
Hi Satya,
Your father will not be able to claim exemption from capital gain tax by paying your loan.
In order to claim exemption, new property has to be bought or eligible bonds have to be bought.
You can get it , but a bit litigative . several case in favour of both .
HI,
No he cannot do, even if he does that he will not get capital gain tax savings.
Capital gains can be saved only if he invests in the new property in his own name. Your properties are already in your possession. Is it not? So where is the new investment. Also you have bought those properties not your father, so how can you transfer your tax benefits to your father. This will be questioned and I am afraid, there is no resolution to this.
Thanks
Damini
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