Income tax u/s 54

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This query is : Resolved

Aman Agrawal (Querist)

08 May 2013
Dear All,

one of my client's father has sold his residential house property and is willing to distribute some of the amount realised to his two sons..

Please let me know the tax implication on this transaction..

Anil Sankar V

Anil Sankar V (Expert)

08 May 2013 Has to pay Capital gain tax,to reduce capital gain tax invest u/s54 , 54 EC...

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

22 June 2013 Planning is to be done only before anything is sold or any action has been taken. In this case property has already been sold. Now the father wants to give some amount to his sons. He is to do the following:
1) Calculate the Capital Gains and determine the Capital Gains Tax and Pay the capital Gains tax.
2) Execute a gift deed in favour of the sons
3) Issue the cheques to the sons. Here you can give the planning that if father wants to create HUF of the sons then the Gift should be given to the HUF of the sons

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