Gifts to brother and sister
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 July 2013
Kindly analyze the following and enlighten me on Income tax matters.
A. B, C and D, hindus, are the joint owners of a residential property in Chennai. They have inherited the property from their deceased father who had inherited from his father.
A and B alone have been occupying and maintaining the property for the past 25 years, also enjoying the rental income. For the purpose of A's son's education, A requests the other three members to transfer their shares to himself to facilitate easy borrowing through mortgage. They make an oral agreement that in case of sale of the property, B, C and D to be paid off their shares after taxes. Eventually A sells the property and desires to transfer the due shares to B, C and D. Kindly explain the incidence of tax in the hands of A, B, C and D.
A. B, C and D, hindus, are the joint owners of a residential property in Chennai. They have inherited the property from their deceased father who had inherited from his father.
A and B alone have been occupying and maintaining the property for the past 25 years, also enjoying the rental income. For the purpose of A's son's education, A requests the other three members to transfer their shares to himself to facilitate easy borrowing through mortgage. They make an oral agreement that in case of sale of the property, B, C and D to be paid off their shares after taxes. Eventually A sells the property and desires to transfer the due shares to B, C and D. Kindly explain the incidence of tax in the hands of A, B, C and D.
20 July 2013
capital gain is attracted to A as he sold property.
B,C & D is also liable to capital gain tax as they have extinuish their right in capital asset.
B,C & D is also liable to capital gain tax as they have extinuish their right in capital asset.
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