Capital gains tax
This query is : Resolved
13 March 2021
My father (85 years old ) has sold land in 2021 which was acquired in 2003. He has three children. He is not interested in investing in any property in his own name. He wants to give sale proceeds to children equally. If children invests same in construction of their own house/buy a flat or land in their own name as per timelines, will this be allowed under capital gain tax. Kindly clarify.
If above is not possible, what is best way of investing sale proceeds. Kindly suggest.
Thanks
If above is not possible, what is best way of investing sale proceeds. Kindly suggest.
Thanks
15 March 2021
No, investing by children cannot avail the benefit of exemption u/s 54 or 54F. Let your father invest in a house property. After that he can gift the property to his children.
Watch this video https://www.youtube.com/watch?v=ZFyMR2VyxyE
Watch this video https://www.youtube.com/watch?v=ZFyMR2VyxyE
21 March 2021
Sir,
Thank you for quick response.
I have read following article in the internet. Kindly go through it and advise me how far is it relevant in my case.
Purchase of Property in the name of Son eligible for Capital Gain Exemption: ITAT
https://www.taxscan.in/purchase-property-name-son-eligible-capital-gain-exemption-itat/51948/
https://www.google.com/amp/s/www.taxscan.in/purchase-property-name-son-eligible-capital-gain-exemption-itat/51948/%3famp
Thank you for quick response.
I have read following article in the internet. Kindly go through it and advise me how far is it relevant in my case.
Purchase of Property in the name of Son eligible for Capital Gain Exemption: ITAT
https://www.taxscan.in/purchase-property-name-son-eligible-capital-gain-exemption-itat/51948/
https://www.google.com/amp/s/www.taxscan.in/purchase-property-name-son-eligible-capital-gain-exemption-itat/51948/%3famp
21 March 2021
I have gone through the link you send. Thank you for such kind of new information. However, it seems that ITAT decision is an aberration from the settled law. You may risk and try your luck. ITAT decisions are bound to struck down by the HC always.
Your father can purchase house property in his name (max two houses u/s 54 upto Rs. 2 crores exemption) and can gift to you immediately. Gift is not a transfer u/s 47.
Your father can purchase house property in his name (max two houses u/s 54 upto Rs. 2 crores exemption) and can gift to you immediately. Gift is not a transfer u/s 47.
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
- Itr 1 processing
- Off Market debit and credit transaction
- Reporting Income under Section 44ADA
- Showing Gift from relative in ITR for this year
- ITR 1: Details for showing Exempt Income
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR returnFY25-26
- Share accounting-->fifo - capital gain - period as per fifo?
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
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
