Capital gains

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2012 Hello. I need the input fro the below case.

If a person sells her immovable property for INR 40 lacs can she distribute INR 15 lacs each to her 2 daughters and keep the remaining INR 10 lacs in her SB account to reinvest in purchase of site/house/flat.

Also can the 2 daughters keep the INR 15 lacs received from their mother in a FD account? If so how can TDS be avoided on the same as they dont have any other sources of income.

Abhijit

Abhijit (Expert)
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20 December 2012 1) Yes option 1 is possible. This transaction would not attract provision of Sec 56(2)(vii) because she gifted amount to her daughter. But u have to check out for capital gain tax & whether it is a STCG or LTCG.
2) Daughters can keep money in FD. If they dont want to attract the provision of TDS then they fill up the Form 15G/15H to the bank, for which only Copy of Pan card required.

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