Capital gain and gift

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This query is : Resolved

Ghanshyam (Querist)

06 December 2013 person had a house property which was sold in f.y.12-13 it was purchase in f.y.2006 and the consideration received from sale it was duly transfered to his daughter as a gift. whether long term capital gain is charge @20% in the hand of person or charge to his daughter please guide me

Manish Bhandari

Manish Bhandari (Expert)

06 December 2013 It will on the person and not daughter. As the gift is application of income and not diverson of income.
So the person will be taxed @ 20% as LTCG.

CA. Aryendra

CA. Aryendra (Expert)

06 December 2013 Agree with Mr Manish and confirm.

Message likes : 1 times

JAI SOBHANI

JAI SOBHANI (Expert)

06 December 2013 Reasoning given by Mr Manish is correct.

Message likes : 1 times

CA. PRANAV K LIMAJA

CA. PRANAV K LIMAJA (Expert)

08 December 2013 Income Tax has been charged on income to the party who receives the same. Gift of the said income is application of income and hence it will be charged in the hands of income earner.

CA Tousif Ahmed

CA Tousif Ahmed (Expert)

10 December 2013 Income tax is calculated on the assessee who earns income. So in this case the person who sold the property will be liable for tax after getting benefit of indexation.

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