SETTLEMENT DEED IMPLICATIONS

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A mother transferred property to her daughter via a settlement deed, stipulating that if the daughter sells it, she must pay £20 lakh to her siblings. The daughter now plans to sell. The tax implications are that the daughter, as the legal owner, will bear the tax liability. Furthermore, she can deduct the payment owed to her siblings from the capital gains calculated on the sale.

R.KANDASUBRAMANIAN

R.KANDASUBRAMANIAN (Querist)
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09 June 2022 Sirs,Mother has executed Settlement Deed to her daughter with the condition that if she sells the property to third party,daughter has to pay Rs 20 lakhs each to her bothers and sisters
now the daugher intends to sell the property to a third party
Whar are the tax implications?
Experts kindly advise us

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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09 June 2022 Tax has to be borne by the daughter only as she is legal owner.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 June 2022 Additionally, the owner has right to deduct the payment liability (as per settlement deed) from the capital gain arrived over the sale of the property.

R.KANDASUBRAMANIAN

R.KANDASUBRAMANIAN (Querist)
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09 June 2022 Dear sirs
well and thanks for your immediate response and reply

Message likes : 1 times

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 July 2022 Most Welcome..

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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10 July 2022 Welcome Dear............

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