Buying Property from my Grandma - Tax implications

Income Tax Tax Savings & Deductions
1

I’m a NRI buying a property worth 69 lakhs from my grand mother which she bought in 1986 . The registration will be done on the min guideline value at 24 lakhs.

In order to pay to the seller (grandma) I’m taking a mortgage loan of 45 lakhs and intend to pay remaining by cash transfer from my overseas account.

  1. Do I have to worry about tax implication on the purchase of the property from my grand mom? If yes, what is it ?

  2. Is there any tax I can save by registering the land as a gift deed ? (Please note it’s not a gift I’m buying it at market rate)

  3. my grandmom intends to distribute the money to 3 of her children, do I save anything by sending the money directly to her kids (one of her kid includes my mom in this case)

2

Check out the possibility of gifting the property to you ( section 56). In some states stamp duty is nominal when gifted. There is no tax on such gift. In turn, you may tax free gift, the funds to your father, lineal ascendants etc. ( pls ref section 56). Pls do a thorough due diligence or consult a CA if need be.