Receipt on Sale of land
This query is : Resolved
11 July 2011
One of my client's mother had an ancestoral property which was sold in Dec 2010 and the receipt from this sale was shared equally by my client and her sister and this amt was deposited to their bank account directly. I wanted to know how my client have to file the return and under which Head of income can she show the amt??
Will it be O.K for the mother to file the return showing the income under the head LTCG and my client don't have to file the return as her income is below the exemption limit????
Will it be O.K for the mother to file the return showing the income under the head LTCG and my client don't have to file the return as her income is below the exemption limit????
CA PARAS BAFNA
(Expert)
18 July 2011
As the property belongs to mother, you are right in taxing the capital gains in her hands.
If mother do not intend to take the money back, it can be deemed as gift by executing gift deeds in favour of both her children.
It is up to you to decide , whether to file the return of your client. However, it is always better to maintain the continuity in return filing.
If mother do not intend to take the money back, it can be deemed as gift by executing gift deeds in favour of both her children.
It is up to you to decide , whether to file the return of your client. However, it is always better to maintain the continuity in return filing.
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