Capital gains and tax thereon and any exemptions for the gai

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manohara (Querist)

08 August 2013 Hi Friends, i have a doubt regarding cost of acquistion in the hands of the assesse.

Mother Transferred land as gift to daughter under a gift deed as on 01/05/1999 value mentioned in the gift deed was Rs. 195000/- and later on on 26/05/2012 the daughter(Assesse) sold it for Rs. 39,00,000/-
mother had purchased the same in the year of 1979 and the value is not known as there are no documents regarding the purchase.

The assesse never filed return of income ever before. And Assesse gifted the sale consideration to his younger son.

The assesse is already have two house properties in her name( whether department verifies if i say i don't have house and purchase a new one)
The younger son with his brother purchased another house.
my doubts are
what is cost of acquistion?
what is the capital gain?
what are the exemption which the Assesse can claim?
If the department finds that son has house and asks for source what can we do about that?
Are there any other tax planning Routes.

Thanks in Advance
Manohar
nachiketha@mail.com

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

08 August 2013 There was no problem had the assesse purchased a third/ forth/ fifth house by selling a house property as there is no limitation U/s 54.
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Her capital gains are to be computed on the basis of the cost of acquisition which is fair market value as on 01.04.1981, and is subject to indexation.
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Capital Gains = 39,00,000-Indexed cost of acquisition (cost will be FMV as on 1.4.1981)
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If the registration of property has not been completed include mother's name with the younger son. The cost of new property should exceed the amount of capital gains.
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manohara

manohara (Querist)

08 August 2013 New Property Already Registered In son's Name
Whether Can we Include the Mother Name NOW In the Registered Documents

How To Determine Fair value As on 01.04.1981 As there Are no sufficient documents regarding value as on that date

Thanks In Advance
Manohar

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

08 August 2013 FOR GETTING TAX BENEFITS WITHOUT ANY PROBLEM ONE SHOULD PLAN IN ADVANCE. YOU MAY CONTACT THE ADVOCATE WHO WILL PROVIDE A SOLUTION.
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FOR 1.4.1981 VALUATION CONTACT THE VALUERS
APPROVED BY THE IT DEPARTMENT. YOU CAN ENQUIRE WITH YOUR LOCAL IT OFFICE FOR THEIR NAMES.
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