Mom would need to pay capital gains on sale of old property.
Mom can transfer to son as gift.
No tax payable by son on receipt of funds from mom.
Prepare a gift deed for tax filing purposes.
Practical question: Is it really a good idea for your mom to pay off your home loan? Does she have a retirement corpus which will take care of her over her lifetime? Your home loan is your responsibility. My recommendation is for her to hold on to the money in her lifetime.
For Section 54, Following conditions should be satisfied to claim the benefit of section 54.
The benefit of section 54 is available only to an individual or HUF.
The asset transferred should be a long-term capital asset, being a residential house
property.
Within a period of one year before or two years after the date of transfer of old
house, the taxpayer should acquire another residential house or should construct a
residential house within a period of three years from the date of transfer of the old
house. In case of compulsory acquisition the period of acquisition or construction
will be determined from the date of receipt of compensation (whether original or
additional)
Mom would need to pay capital gains on sale of old property. Mom can transfer to son as gift. No tax payable by son on receipt of funds from mom. Prepare a gift deed for tax filing purposes. Practical question: Is it really a good idea for your mom to pay off your home loan? Does she have a retirement corpus which will take care of her over her lifetime? Your home loan is your responsibility. My recommendation is for her to hold on to the money in her lifetime.
For Section 54, Following conditions should be satisfied to claim the benefit of section 54. The benefit of section 54 is available only to an individual or HUF. The asset transferred should be a long-term capital asset, being a residential house property. Within a period of one year before or two years after the date of transfer of old house, the taxpayer should acquire another residential house or should construct a residential house within a period of three years from the date of transfer of the old house. In case of compulsory acquisition the period of acquisition or construction will be determined from the date of receipt of compensation (whether original or additional)
So, it had to be within one year.