31 July 2017
Long back in 2012, my father had sold one of our house inherited from my grandparents as an immovable property. The entire transaction was carried transparently and we had received cash in terms as bank deposits from the owners. My grandparents had 3 sons out of which my father is the youngest. Now 4 days back we got an letter subjecting to non filing of IT returns based on my father's pan card. Please advise what to do.
31 July 2017
1. First of all work out the taxable capital gains on the transaction and ascertain if there is any capital gains. In case of old properties in all probability there will be a gain. Note that you can consider cost to original holder, plus cost of improvement, and can take fair market value as on 01.04.1981 in case the property was purchased before that. 2. What was done with the money received on sale. If it was invested in a house property then your father may be eligible to claim a deduction. 3. Unless i see the letter or notice received it would be hard to ascertain an appropriate reply.If they are asking for a return to be filed, it would be best to comply with it. share text of notice, date of receipt of notice etc to ascertain what can be done.
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