If a resident individual earns income in a foreign country from immovable
property and if such income is governed by the Double Taxation Agreement with that
country, it cannot be assessed in India.
The number of property holders in the family should be more so that each
family member has a property in his or her own name and thus separate taxable income from
property, if given on rent. While joint purchase of property is possible, it should be
noted that each co-owner must invest his own funds in the ratio of his ownership of the
property.
One residential house or a portion of the residential house would be
completely exempt from wealth tax without any upper limit of exemption.
Stamp duty, registration fee and other related expenses would also be
eligible for tax rebate.
If a person sells shares, jewellery and land, there would be no capital
gains at all if the full sale consideration is invested in buying or constructing a house
or flat during this period if the person does not have any other residential property.
With regard to purchase of property for the purpose of business,
profession or vocation, the entire interest on the loan taken for the property will be
fully allowed as a deduction by way of business expenditure.
For those who wish to provide immovable property to their children, the
best way is not to put it in the name of the children, but to create a 100% Specific
Beneficiary Trust for the children. The parents could both be trustees and manage this
trust.
Any gift of property made by a person to a fiancee before the date of
marriage or even on the date of engagement would not attract the provisions of clubbing of
income as on the date of gift, the gift is made by the prospective husband to his
prospective wife or vice versa.
The long term capital gains for individuals and Hindu Undivided Familied
(HUF's) are exempted if the sale consideration of any other capital asset is invested in
purchase of a residential house provided the assessee was not owning any other residential
property.
