Hi
I recently purchased a property by availing housing loan. Since the loan amount is high my father is planning to sell one of his properties and partially pay off my loan. Will the proceeds from the sale of my father's property be subject to capital gains tax in this case?
As your father is selling a property, he would earn capital gains from such sale. These capital gains would be taxable normally.
If a new residential house property is bought by your father (single or jointly owned), he can claim tax benefit in capital gain tax.
If your father is a joint owner of newly purchased property, he can claim tax benefit u/s 54/54F.
