27 April 2015
After the death of a father 2 years back, Two sons mutually agreed & signed a legal deed, and divided and took an equal share of a residential house which was purchased by their father around 40 years back. They don't have any land papers �and even dont know the amount paid at the time of purchase of land by their father.�There was no HUF created. Both sons are regular tax payers but they havent done any tax treatment or entries till now.
Q1: Was any tax treatment to be done at the time of taking that property by the sons?
Q2: If q1 is affirmative, �Since it is a back date case, what is to be done now?
Q3: Now one of the brother want to sell the property to a person, and want consideration in white,? So how can he do that coz he hadnt done any entry etc when he took his partition?
27 April 2015
1. Property purchased prior to 1.4.1981. . 2. Get valued the property valuation as on 1.4.1981 from a registered valuer. . 3. There is no need of focusing on HUF concept as the property has been received by them in Individual names. . 4. The signed legal paper (Deed) is relevant in deciding the fact that the property is an inherited property. In addition there to old electric and Local Authority Tax Bills/receipts are also conclusive documents. . 5.There is no tax treatment at the time of taking property by the sons. They can make the entries in this FY also by narrating the facts. . 6.The capital gains on the share in property will be computed on the basis of indexation of valuation as mentioned in para 2 above. .
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