Money received from relative is gift and exempt from tax

I am co-borrower of home loan taken by my son who is an NRI. Loan instalments are being paid by my son directly. My daughter transferred Rs 1.5 Lakh to my bank account which I paid for prepayment of my son's home loan as mentioned above. Will this transaction have any tax implication for me? 
– A D Dechaudhari

Any sum of money received from relative is treated as gift and is exempt from income tax. The amount received from daughter qualifies as gift from relative under the Income-tax Act. Therefore, there will not be any tax liability on the sum of Rs 1.5 lakh received by you from your daughter and utilised for re-payment of loan.

I have made capital gains on sale of two flats. Can I club the gains from both flats for purchase of one flat? 
– Aspi Kotwal

An individual shall be eligible to claim exemption from capital gains arising on sale of residential house if the same are invested in purchase/ construction of one new residential house within the prescribed time limits. However, there is no restriction stipulated in the act that capital gain arising from sale of more than one residential houses cannot be invested in one residential house. Therefore, even if, two flats are sold and the capital gain arising from the sale of both the flats is invested in one residential house, exemption under section 54 of the Income Tax Act, 1961 (Act) can be claimed in case of sale of each flat provided the time limit of construction or purchase of the new residential house is fulfilled in case of each flat sold.

I want to know if treatment for autism is covered under section 11DD. We are paying a huge amount regularly for our son's therapy. 
– Laxmi

The treatment for autism is not considered as specified disease or ailment for purpose of deduction under section 80DDB of the Act and hence not covered under rule 11DD. However, the same might be regarded as a disability and you shall be eligible for claiming exemption under section 80DD of the Act in case of treatment of a person with disability. The amount of deduction permissible under the said section is Rs 75,000 whereas it shall be Rs 1,25,000 in case of severe disability. Also, you shall be required to enclose a certificate from the prescribed medical authority along with the return of income.

Chirag Nangia, Director, Nangia Advisors (Andersen Global)

Send your queries related to personal tax to personalfinance@dnaindia.net.