Query on Property taxation
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
08 November 2010
One of my clients has an old existing Residential house at Chennai ,bequeathed to him and his brothers (9 children) by his parents who are no more. My client and his brothers intend to demolish the same,& build 9 flats for their self occupation. My clients' parents had also two flats nearby which they intend to sell & put that sale proceeds into this construction ,along with my client's money.
The sale proceeds of the two flats ,which also belong to the nine children ,if they invest in constructing the flats :will it be taken as inheritance money & hence not taxable ?
If instead of rebuilding flats,if my client and his brothers sell the plot & share the money,is it taken as inheritance money, & hence not taxable?
The sale proceeds of the two flats ,which also belong to the nine children ,if they invest in constructing the flats :will it be taken as inheritance money & hence not taxable ?
If instead of rebuilding flats,if my client and his brothers sell the plot & share the money,is it taken as inheritance money, & hence not taxable?
taxindiaconnect
(Expert)
08 November 2010
The clients would be subject to capital gain tax in both the cases if they sell the other property and build the new houses by that money or they sale the entire property and share the money. However in both the cases they have the recource of saving tax u/s 54 of IT Act.
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