Capital Gain on residential building

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This query is : Resolved

Abhilash chandra (Querist)

15 February 2011 Dear Expert,
A father transfers his residential house property in the name of his two married daughters. Mutation is done in their name but no registration is done. However, the rent earned from the property is being credited to the daughters' bank A/c. The daughters also gave power of attorney in the name of their father to dispose off the said property and deposit the sales proceeds to their bank A/c.

Now in case of sales of the house, who will be liable for capital gain, father or the daughters?
Thanks & Regards
ABHILASH

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)

15 February 2011 The daughter has to pay Tax on profit earned on sale of property. but check the follows:

Is any gift paper prepared at the time of gifting property to his daughter.

whether Rent agreement was between daughter and lessee.

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