Legal heir taxability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2014 Dear Friends,

Two foreigner Directors have Floated a company in india with authorized capital of Rs. 1 Lac which is not sufficient for running the organisation. now they wanted to know, which mode will be easier to bring and get back the money towards working capital needs etc.. and also the procedure where i will get.

if anybody helps me in this regards that would be great guys as i am dealing this issue first time.

Thank you

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2014 Individual sold his land for Rs.15 lacs and purchased 2 Flat's. 1st of Rs. 8,25,000 on his name & 2nd of Rs. 18,00,000 in the name of his son. Please advise on the allowability of exemption u/s 54 of income tax act.
How he can get Exemption for capital gain on both Flat's?

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2014 "A" purchases property at Rs.10 lakhs in june 2010. He dies in oct 2010. The Society transfers shares to his legal heir "B" in Dec. 2013. The legal heir sells property in Dec 2013 at Rs.16 lakhs. Their are 7 other legal heirs to "A" who authorised "B" for transfer and sale of this property.
Query-1) What will b the deemed owner value of purchase.
2) Whether heir will b liable for long term or short term capital gains.
3) Is there any tax liability.
4) In case there are 8 legal heirs (society transferred in name of one heir but this amount will be shared by 8 legal heirs) what will be the amount taxable in each heirs share. Pls. advise.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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18 February 2014 i am answering the section 54 query. Since you have sold the land, you dont covered under 54, you get cover under 54F subject to conditions specified therein. you should be able to claim complete exemption under 54F against the house purchased against your son's name (in many cases it has been allowed)

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