Long Term Capital Gain Tax

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SUNIL SHAH (Querist)
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02 September 2010 My father had purchased a flat in 1981for Rs. Three Lacs.
We are two brothers.
Father has gifted the flat to two of us in the ratio of 50:50 in July-2010.
The valuation of property for stamp duty purpose was arrived at Rs.265 Lacs.We paid required stamp duty @2% being blood relation gift of property.
We intend to sell the flat now in September-10 for appx. consideration of Rs.450Lacs.
Against which , we will buy 2 flats for the entire sale consideration received in two brother's name.
Would it anywhere attract any capital gain tax? Since we have hold the property in our name for short period.
We have been advised that the date and cost of purchase of the Donor will be applicable and we will not have to pay any LTCG. Please advise.

Sunil Shah

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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02 September 2010 Whether yourself and your brother have identifiable right in the inherited flat may lead to be a debatable issue. Therefore, the modus operandi of the reinvestment and the status in which income tax return are being filed by you two had to be looked again. In view of the above , a second opinion from a tax expert may be sought before taking a final decision.

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