Capital gain
This query is : Resolved
22 July 2013
Dear Sir,
We(My father, brother and I) have a house in the name of my father. Acquisition and construction of the house done ( Ground floor about 50 years before and First floor about 30-35 years before ).Know one know the real cost of the house. Now my father wants to sale the property and want to distribute the sale proceeds in three parts. The sale proceeds is about 1.75 crore.
Please let us know the Tax obligation for each of us.
Thanks
We(My father, brother and I) have a house in the name of my father. Acquisition and construction of the house done ( Ground floor about 50 years before and First floor about 30-35 years before ).Know one know the real cost of the house. Now my father wants to sale the property and want to distribute the sale proceeds in three parts. The sale proceeds is about 1.75 crore.
Please let us know the Tax obligation for each of us.
Thanks
22 July 2013
Though it is a house of your all family members, still you can not deny the fact that if your father wish he may not give you
a single paisa out of Rs.(1.75/3) crore.
.
The fact is that- this house is in the name of your father and he only will be assessed for capital gains tax until he divides the property by defining the shares and fulfilling the legal requirements. Then only capital gains can be allocated.
.
In case all the "deemed owners" are taxed @ 20% ( Total Income above Rs. 5.00 lac) then there is no need for distribution. Better think of purchasing New Residential House.
.
In case of the property constructed prior to 1.4.1981, the valuation as on 1.4.1981 is considered as cost and as no body knows in you family -when the upper floors were constructed and how much was spent-let it also take as constructed prior to 1.4.1981.
.
Get valuation of the property from an approved valuer.
.
a single paisa out of Rs.(1.75/3) crore.
.
The fact is that- this house is in the name of your father and he only will be assessed for capital gains tax until he divides the property by defining the shares and fulfilling the legal requirements. Then only capital gains can be allocated.
.
In case all the "deemed owners" are taxed @ 20% ( Total Income above Rs. 5.00 lac) then there is no need for distribution. Better think of purchasing New Residential House.
.
In case of the property constructed prior to 1.4.1981, the valuation as on 1.4.1981 is considered as cost and as no body knows in you family -when the upper floors were constructed and how much was spent-let it also take as constructed prior to 1.4.1981.
.
Get valuation of the property from an approved valuer.
.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Itr 1 processing
- Reporting Income under Section 44ADA
- Off Market debit and credit transaction
- ITR 2 Short Term gain & Long term gain
- ITR validation error - Balance sheet is not filled
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR returnFY25-26
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR 1: Details for showing Exempt Income
- Registration as Authorised Representative of minor
- Article ship defecit
- Bank Accounts in Balance Sheet for ITR 3
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
