capital gain u/s 54

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2011 Govt leased out land to the assessee in planned city for residing purpose Assessee constructed house and resided there for 25 yrs In 2010-11 assesse transferred the property to another person in exchange for a consideration which is mentioned in the agreement Subsequently assessee expired also
According to some persons consideration should be treated as deposit since govt leased out the land hence it should not attract tax According to others it should be taxable as capital gain
Regarding the return filing whoose PAN should be used for tax filing since assessee does not exist at the time of depositing tax and filing return His heirs will pay the tax Some persons give opinion since the person does not exist return should be filed in the name of heirs with a declaration that the assessee has been expired Another opinion is return should be filed in the name of the dead person with a declaration that he is no more and assess the income and close the file
Kindly advice as soon as possible

Ratan Sharma

Ratan Sharma (Expert)

20 April 2011 The transaction mentioned in your querry attracts capital gain tax. Therefore file the return in the name of deceased person on his PAN. Verification in return form should be signed by the legal heir in such case. No need to file any declaration with the income tax officer. Let the return be cleared in normal process. By filing declaration you may attract the unnecessary attention of ITO in your case.

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