Capital gains
This query is : Resolved
09 August 2013
Our house of forefathers were sold by us and proceeds were directly remitted to repayment of loan taken by our brother and we stood as guarantors.
Adevise on Capital gains as we have not received consideration and it has been deposited for the repayment of debt as a guarantor.
need info asap
Adevise on Capital gains as we have not received consideration and it has been deposited for the repayment of debt as a guarantor.
need info asap
CA PARAS BAFNA
(Expert)
09 August 2013
The ancestral property is sold and the names of the persons(legal heirs) selling the property have been mentioned in the sale deed.
.
Repayment of loan is an application of the capital gain income received. Capital Gains remains taxable.
.
Adopting 1.4.1981 valuation compute the capital gains and divide the capital gains proportionately in the respective legal heirs.
.
.
Repayment of loan is an application of the capital gain income received. Capital Gains remains taxable.
.
Adopting 1.4.1981 valuation compute the capital gains and divide the capital gains proportionately in the respective legal heirs.
.
10 August 2013
as we have not received consideration and amount is directly deposited to Bank Loan account where the property was mortgaged as collateral security
Is there no provision for capital gain tax exemption
Is there no provision for capital gain tax exemption
CA PARAS BAFNA
(Expert)
10 August 2013
As mentioned earlier also,
Repayment of loan is an application of the capital gain income received.
The guarantors created their personal liability and to discharge the said liability willingly or unwillingly they have to utilise the sale proceed.
.
They could have paid it out of their own resources also. Suppose, after meeting the liability through own resources, they sell the property , what should be the tax incidence?
.
As such, Capital Gains remains taxable.
.
Repayment of loan is an application of the capital gain income received.
The guarantors created their personal liability and to discharge the said liability willingly or unwillingly they have to utilise the sale proceed.
.
They could have paid it out of their own resources also. Suppose, after meeting the liability through own resources, they sell the property , what should be the tax incidence?
.
As such, Capital Gains remains taxable.
.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Tax on Amount transferred in HUF Account
- Nursery business
- GST input credit on commercial property
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- Working on Gold wastage during Melting of old gold jewellery
- TDS on Dashcam rent and allied services
- ETDS return q4 25-26
- Royalty payments to the Mining Department for procurement of murum - GST input
- Capital gains in IT returns
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
