NRI Funds & their utilization

This query is : Resolved

Guest

Guest (Querist)

04 November 2007 Hi.. I came before with a case..please read..

Facts...
Mr.X is a father of NRI son..He gave his dad a certain sum, which was invested on urban lands in the name of Mr.X and Mrs. X. Later Mr.X & Mrs.X had sold out those lands as individual plots,by making land marks and some earth works done. A part of the amount received was again invested in vacant lands. (The whole process was done within 12 Months)

My Query is:

What will be the tax implication and what steps should be taken for Tax planning?

KAAPIL

KAAPIL (Expert)
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05 November 2007 Basic questions : Amounts?
Residential Stats of Mr. X and Mrs. X (opefully resident)
Are they senior citizens?
Were at time the land was registered in name of father and mother or was it trading?

Guest

Guest (Querist)

11 November 2007 The Amount is upto 1Cr.
Both are Residents
Not Senior Citizens
The land was registered in the name of father and mohter, not trading..

CA. Kirti S. Ganatra

CA. Kirti S. Ganatra (Expert)
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12 November 2007 As money is given by his son who is NRI. So, this income assumed to be already taxed in hand of his son. So, it is just like gift and no income accrued till received from son and invested in Land. Now when land is sold calculation should be done that what was the cost of that portion and what was gain/ loss from sale proceeds