TAX IMPLICATION ON INHERITANCE OF PROPERTY
This query is : Resolved
27 June 2023
DEAR SIR, 2 BROTHERS HAVE BECOME THE JOINT OWNERS OF A RESIDENTIAL PROPERTY BY VIRTUE OF A WILL WRITTEN BY THEIR MOTHER. ONE BROTHER IS STAYING IN THAT PROPERTY. THE OTHER BROTHER WANTS TO RELINQISH HIS SHARE BY RECEIVING MARKET VALUE OF HIS SHARE OF PROPERTY FROM THE OTHER BROTHER.
1. WHETHER ANY CAPITAL GAINS ARISE ? IF SO, WHAT ARE THE TAX IMPLICATIONS?
2. WHETHER SECTION 56 WILL COME TO THE PICTURE AND THEREBY NO TAX ARISES? IF SO, WHETHER ANY GIFT DEED TO BE DONE?
THANKS & REGARDS
1. WHETHER ANY CAPITAL GAINS ARISE ? IF SO, WHAT ARE THE TAX IMPLICATIONS?
2. WHETHER SECTION 56 WILL COME TO THE PICTURE AND THEREBY NO TAX ARISES? IF SO, WHETHER ANY GIFT DEED TO BE DONE?
THANKS & REGARDS
27 June 2023
1. Yes, long term capital gain over his share in the property being transferred.
2. Yes, Gift deed can be done, in that case no tax liability would arise.
2. Yes, Gift deed can be done, in that case no tax liability would arise.
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