I am NRI from US. I have decided to buy a land worth 30 lacs in India. My parents are buying on bahalf of me. Can i transfer money to their account and they can give the check for purchasing.
Will my parents will be legal trouble or do they need to pay taxes?
2 Answers from Attorneys
Dear Sir / Madam,
Your parents ought to have surveyed and shortlisted the land site. The next step is to ascertain the title clearance of the property to ensure that there is no encumbrance for purchase, and the title is clear in all respects. You or your parents should thereafter directly deal with the Owner and obtain his / her signature on the title documents, Sale Deed, Property Card, etc., at the time of making the payment to the vendor are transferred in your name. Ensure that you get the land property transfer stamped and registered.
Yes, you can transfer monies to your parents A/c, and they in turn, can issue cheques to the seller in settlement. Since you are ensuring that all the title documents will be in your name, your parents are in no way, attracting any tax liability, since the income tax liability is on the seller and not the purchaser of the property.
no ur parents does not have to pay any tax........ for any legal query mail me at [email protected]