urgent query

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sanjay (Querist)
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07 December 2010 Hello Experts
I sanjay an accountant want your valuable advise. My Question is:
I have got a will of property registered from my father in 2007 after his death. I don't know the value of property in his books. Now I have sold that property in June 2010 for Rs420000/- and purchased in Oct 2010 for Rs460000/- in my wife name. What will be the tax I have to pay and how much?
thanks
sanjay

CA Dhiraj Ramchandani

CA Dhiraj Ramchandani (Expert)
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07 December 2010 it should taxable in ur hands.. U can show that consideration from sale of property u transferred to ur wife..

taxindiaconnect

taxindiaconnect (Expert)
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07 December 2010 Since in this query you do not know the cost of assets transfered, you may get it valued at the fair value as at 1/4/1981 and take this as a the cost of acquisition, if the assets is purchased before that.

The entire consideration should be invested to save taxes u/s 54F, For qualifying for the exemption under section 54F, it is necessary and obligatory to have the investment made in residential house in the name of the assessee only. - Prakash v. ITO [2008] 173 Taxman 311 (Bom.).

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