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Capital gain

Tax planning 114 views 2 replies

vishnukumar

Student CA IPC / IPCC

21 Points Joined August 2015

Its about selling of property before inheritance for settling inheritance ex Mr. A sells his property to settel inheritance with its proceeds to his sons Mr B , C & D . will Mr.A be taxed under capital gain?

If possible Please help with section..

Thank you in advance

Replies (2)

Rishi Mehta

Ur friend

1533 Points Joined June 2017

Selling property means transfer of Capital Asset and proceed on transfer cab be used for any purpose.
Section 45(1)Provides that any gain on "Transfer" of Capital asset effected in the financial year will be chargeable to tax under the head of Capital gain in the year of transfer.

Therefore, transfer of property in case of Mr. A shall be chargeable to tax irrespective of use of sale prow