Family Setllement - Tax Implications
This query is : Resolved
22 August 2008
Hello Friends,
Please let me know what will be the status for the following transaction under Income Tax Act?
There are two properties "A" & "B" inherited by the two brothers from their father.
Brother 1 gets Property "A" & Brother 2 gets Property "B". Apart from this, Brother 1 also pays Rs 10,00,000/- to Brother 2.
My Query is What is the nature of the amount paid by way of family settlement and its tax consequences?
Please let me know what will be the status for the following transaction under Income Tax Act?
There are two properties "A" & "B" inherited by the two brothers from their father.
Brother 1 gets Property "A" & Brother 2 gets Property "B". Apart from this, Brother 1 also pays Rs 10,00,000/- to Brother 2.
My Query is What is the nature of the amount paid by way of family settlement and its tax consequences?
22 August 2008
Property received form inheritance is not taxable.
When these brothers sale the property it will be taxable as capital gain. The cost of acquisition for the same is same as to their father.
When brother 1 pays rs. 10 lacs then it is the cost of acquisition to him. at the time of sale he can claim it.
Regards'
Yatesh Renuke.
When these brothers sale the property it will be taxable as capital gain. The cost of acquisition for the same is same as to their father.
When brother 1 pays rs. 10 lacs then it is the cost of acquisition to him. at the time of sale he can claim it.
Regards'
Yatesh Renuke.
23 August 2008
Thanks for the reply Yatesh,
But my query is whether any capital gain will arise in the hands of brother 2 at the time of receiving Rs 10 lacs since this amount is not received by him by way of inheritance
But my query is whether any capital gain will arise in the hands of brother 2 at the time of receiving Rs 10 lacs since this amount is not received by him by way of inheritance
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
- GSTR-1A How to update Invoice
- Excess salary payment.
- Capital gain from sale of house property
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Stamp Paper for partnership firm change new income tax 2025
- SFT Cash Deposit in Current Account
- Value of property in capital gain
- FORM 26A APPLICABILITY
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
