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Sale of ancestral property on j.v get one flat and cash

edwardraj (ACCOUNTS MANAGER) (34 Points)

27 May 2017

HI,

Please clarify , that my friend' s mother aged 52 had JV with builder and agree to sell ancesster land of 2400 sqft and builder agrees to hand over one flat out of 4 flat he builts on the land and cash of Rs 80,00,000/- for the transaction . and How much the mother have to pay income tax for cash Rs 80,00,000/- and flat she receive. and how she can save tax . and can she gift her daughter[gold jewellery or FD ] out of cash 80 lakhs she received TO SAVE income on ancester property. please .

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5 Replies

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 27 May 2017

Sale of land is taxable under head Capital Gain using sales consideration as Rs.8000000/- plus value of flat received.

Calc

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 27 May 2017

If u r planning for tax saving then Invest sales consideration under Bonda of National Highway Authority & Rural Electrification Board of India for 3 years.

Things to be remembered

1. Max exemption claimed is Rs.5000000.
2. Purchase such bonds within 6 months from date of t

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 27 May 2017

3. Not to sell such Bonds i

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 27 May 2017

in next 3 y rs

(Guest)

To decide about the capital gains you should refer to the agreement.

The sale consideration will be the flat as well the extra amount.(the flat part can be assumed to be invested u/s 54F)

Sale of immovable property by way of cash will attract heavy penalties u/s 271D, which is a sum equal to 100 per cent of the amount received towards consideration. This rule applies with effect from June 1, 2015. I suggest you ask the builder to pay the consideration by cheque only. You can then invest in REC bondsupto Rs 50,00,000/-