Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Capital Gain Tax

Save Share

This query is : Open

Bimal Thacker (Querist)
Follow

17 January 2011 Mr. A purchase house property in the year 1979 and transfer the same in the name of his elder son Mr X in the year 1991. Mr A has three son X, Y, & Z. Now the propery will be sold and sale proceed will be distributed equally to three son X Y Z.

How the tax will be effected and what tax planning should be done

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
Follow

17 January 2011 Since the property is in the name of son. Any profit/loss arising from the sale of property will be taxed under the head Capital Gain in the hands of X Only.

After receiving the sale proceeds by x, X can gift the money to his brother Y & Z

Bimal Thacker

Bimal Thacker (Querist)
Follow

19 January 2011 as the property is proposed to sale, whether before sale gifting the share to two brother is possible?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now