Capital gain tax

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Dinesh (Querist)
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22 December 2012 Dear Sir, My Friend's Father has Sold the Land(Forefather Land) in April 2010 for Rs.20 Lac.and deposited the sum of amount in his Son's Account from where they are getting the Interest also from this amount they have purchased a house of Rs.5 Lac My friend Father Died on 2011. When my friend got the details that the land sold by his father is not an agricultural land(Because it is under the 8 Km distance from the Town). he is worry of the Capital Gain tax, as my friend don't came under the Tax Slab he has not filed the Income Tax return till now so kindly guide whether my fried can purchase any Agricultural land and the Second Property or anything else from the amount left so that he can Exempt the Capital Gain Tax.
Also,
1) The Amount father deposited in friend's account does not belong to Friend,
2) As friend is having Two Brother and One Unmarried Sister, it include their Shares also, and also of his Mother
3) The House Purchase by Father in the name of Friend is only the sole house on friend name

So kindly guide whether he can by new property or Agricultural Land in the name of his Brother of Sister, what else he can do to exempt the Capital Gain Tax.

Thanks

Abhijit

Abhijit (Expert)
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22 December 2012 Hi, As your friends father was died in 2011 but they sold the property in April 2010. At he time of Friends father is in existence so the liability is created in the name of Friends Father. As friends father does not file their return as well as amount is also not deposited in the CGAS Scheme so there will be no exemption from to friends father.
As the assessee is died in 2011 so its a liability of legal heir to file their Return of income for the A.Y. 11-12. And as per provisions of IT Act they all are Jointly & severally liable for the dues created on account of Capital Gain Tax.
And there will be no difference in tax if there son invested in house because this exemption is available only to the assessee who have earned capital gain.

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