Mr.X has transferred Gold to his Son Mr.Y by way of Will.Thereafter Y has sold this gold to Mr.Z.Mr. Y invested the amount in residential property.Tell me about capital gain provisions in this regard in case of Mr.Y.
Smita (student) (104 Points)
25 July 2013Mr.X has transferred Gold to his Son Mr.Y by way of Will.Thereafter Y has sold this gold to Mr.Z.Mr. Y invested the amount in residential property.Tell me about capital gain provisions in this regard in case of Mr.Y.
Saurabh Maheshwari
(B.com,ACA)
(5923 Points)
Replied 25 July 2013
No capital gain on transfer of gold by Mr X to his son(Mr.Y).....
Cost in tha hands of Mr. Y is same as the cost of acquis to his father(previous owner) as per Sec 49(1)
When the gold is sold by Mr. X-
Following will be the consequences of the above transaction:
Sale Consideration | xxxxxx |
Les:Indexed Cost of Acq + Sale Exps | xxxxx |
Long term capital gain | xxxx |
Less:Exemp u/s 54F(subject to fulfilment of conditions as prescribed in sec 54F)....Exemp = Long T. Capital Gain/Net Sale Consider * Invest made in Rs. House Prop | xxxxx |
Mihir
(Wealth Manager)
(5293 Points)
Replied 25 July 2013
Exemption u/s 54F shall be available for Mr Y to save capital gain on sale of gold.
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