Selling a house to your son, even if he transfers the money, could still be considered a gift! Tax authorities check 'where the

When parents and children buy property, don't just keep the remittance record; the complete cash flow is key. For real estate transactions between relatives within the second degree of kinship, such as parents and children, it's not enough to just have a sales contract and the final remittance record. Where the funds came from, whether they truly belong to the buyer, and whether the payment process can be fully proven are all crucial factors for the tax authorities in determining whether the transaction is a genuine sale or involves a gift. If the house price was indeed paid with the son's own funds and can be fully proven, the transaction can be treated as a sale. Conversely, if the money was first lent to the son by the father and then remitted back by the son, or if it was obtained with the seller father providing a guarantee, it may fall under the scope of deemed gifts stipulated in the 'Estate and Gift Tax Act'.