Income tax & gift tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
12 July 2013
Dear Sir,
I am having 1 property situated in Mumbai purchased in the year 1995 for Rs. 5 lacs holding jointly in the name of my Father & Mother. Now I want to dispose off that property. Sale consideration will be around Rs. 40 lacs.
Further I would like to purchase new property for Rs. 45 lacs jointly in my name & my wife from the sale consideration of the above property.
Queries:
1) Whether I should transfer Rs. 40 lacs after the sale from my fathers a/c to my account
2) Whether my parents should gift the property to me
3) Whether the new property should be jointly owned by me, my wife and my father
What will be provisions of Capital Gains & Gift tax applicable.
I am having 1 property situated in Mumbai purchased in the year 1995 for Rs. 5 lacs holding jointly in the name of my Father & Mother. Now I want to dispose off that property. Sale consideration will be around Rs. 40 lacs.
Further I would like to purchase new property for Rs. 45 lacs jointly in my name & my wife from the sale consideration of the above property.
Queries:
1) Whether I should transfer Rs. 40 lacs after the sale from my fathers a/c to my account
2) Whether my parents should gift the property to me
3) Whether the new property should be jointly owned by me, my wife and my father
What will be provisions of Capital Gains & Gift tax applicable.
12 July 2013
If u sell 1 House property and buy other within 2years of sale thencap gin willb exepmted to the extent it is used to pur new house.
If they gift u then u needto make gift deed and reg it and need to pay stamp duty on it.
If they gift u then u needto make gift deed and reg it and need to pay stamp duty on it.
12 July 2013
Resulting Capital Gain in the transaction would be Around 23.29 lac.
.
Your father & Mother both will be liable to capital gains tax of around 480000/- divisible according to their respective share in the property.
.
In such a case new house has to be purchased in the name of the parents and they can relieve from tax burden by investing the amount equivalent to capital gains.
.
You may show your name also by investing in the following manner-
Father 15.00 Lac 1/3rd Share
Mother 15.00 Lac 1/3rd Share
Yourself 15.00 Lac 1/3rd Share
.
You may borrow 10.00 lac from your parents .
.
Your father & Mother both will be liable to capital gains tax of around 480000/- divisible according to their respective share in the property.
.
In such a case new house has to be purchased in the name of the parents and they can relieve from tax burden by investing the amount equivalent to capital gains.
.
You may show your name also by investing in the following manner-
Father 15.00 Lac 1/3rd Share
Mother 15.00 Lac 1/3rd Share
Yourself 15.00 Lac 1/3rd Share
.
You may borrow 10.00 lac from your parents .
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
- CLOSING STOCK QUERY
- Gst on travel by air for business purposes
- GST ISD Query on various AMCs
- Query regarding reporting of exempt foreign remuneration in ITR
- DUE DATE FOR ITR FILING
- Rent claimed on building given on permissive possession basis
- Error in uploading Form 10BD
- F&O reporting in ITR
- Short Term Gain Reporting ITR
- 44AD, 44ADA business details
- Gst reverse charge mechanism to be claimed in the month of payment
- Itr processing refund
- U/S 194 T
- TDS refund Indemnity Bond
- ITC BENEFIT ON BROKRAGE PAID
- PF wage ceiling
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
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
