Capital gain

Hardik Patel (B.Com, CA Final) (158 Points)

10 May 2018  

Dear Sir/Mam,

 

I have query regarding taxability of residential Property. I am explaining my qurey through example.

 

Mr. A's and Mr B's father are brother and they are jointly residing. Property - 1 is registered in the name of Mr. A but that property has been used by Mr. B 

Property - 2 is registered in the name of Mr. B but has been used by Mr.A. Both the property were purchase in 1987-88.

Now recently they make family arrangement in writing clarifying that Property - 1 belongs to  Mr. B eventhogh registered in name of Mr.A and Property - 2  belongs to Mr. A eventhough registered in name of Mr.B

Now Mr. A want to sale Property - 2.

So my question is whether Mr. A can take cost of Property - 2 for capital gain purpose? Whether Mr. A is eligible for FMV as on 01/04/2001 and period of holding of previous owner? This family arrangement is genuine and not made for any tax evasion.

 

I am requesting to all of you to Please answer it with any case low.

 

Thanks.