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?

taxindiaconnect

taxindiaconnect (Expert)
Follow

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.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Jayesh Pipalwa

George Innocent

Mukund Thakur

arya yashu

Rajat Khandelwal

Subscribe Now

Query on Property taxation

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Article Assistant

Accountant

Manager- Finance and Compliance

GST CONSULTANT

CA Final

GST CONSULTANCY