LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Capital Gain Doubt

Sonia Verma (state govt employee) (347 Points)

03 July 2011

Mr. X had bought a house in 2007 for 10 lakhs...

During 2009, he registered the same house in the name of Y & Z, his major Son & Daughter.

In 2011, the house is being Sold for 20 lakhs...

How will the Capital Gains be computed? Will there be separate computation of C.G in the hands of Y & Z?

Thanks

Reply
Follow
Share

28 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 03 July 2011

As per my knowledge, the Capital Gains shall be taxable in the hands of Y and Z in the ratio of their holding.

You can wait for other members to comment on the same.

Regards,
Devendra

VIPIN KUMAR (Practicing) (309 Points)
Replied 03 July 2011

The indexed cost of acquisiton will take from 2007 & the tax liability will be imposed on Mr Y & Z.

kamal kishor sen (STUDENT Rajasthan) (2156 Points)
Replied 03 July 2011

Yes, who receve the money (Registered owner of the house i.e. Y & Z), are liable to pay capital gain tax.

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 03 July 2011

Originally posted by : Devendra
	As per my knowledge, the Capital Gains shall be taxable in the hands of Y and Z in the ratio of their holding. You can wait for other members to comment on the same. Regards, Devendra

AGREED.

1 Like

Anjaly.P.A ( Article( CA Final)) (221 Points)
Replied 03 July 2011

In my view, Y & Z will be taxable in the ratio of holding.

Anjaly.P.A ( Article( CA Final)) (221 Points)
Replied 03 July 2011

I think the indexed cost ill be taken from 2009.

(Guest)

Originally posted by : Devendra
	As per my knowledge, the Capital Gains shall be taxable in the hands of Y and Z in the ratio of their holding. You can wait for other members to comment on the same. Regards, Devendra

1 Like

Rengasamy.R (CA Final) (228 Points)
Replied 03 July 2011

capital gains taxable in the hands of Y &Z in their share holding , taking indexed cost of acquisition in the year of 2007.

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 03 July 2011

Originally posted by : Sonia Verma
	Mr. X had bought a house in 2007 for 10 lakhs... During 2009, he registered the same house in the name of Y & Z, his major Son & Daughter. - mode of transaction ...................gift to son and daughter or transfer against consideration? In 2011, the house is being Sold for 20 lakhs... How will the Capital Gains be computed? Will there be separate computation of C.G in the hands of Y & Z? Thanks

Y & Z is liable for capital gain and its tax,

cost of property would be taken from 2007 in case of gift, and 2009 in case of transfer against consideration.

1 Like

Vijay (Adamo Studio) (2112 Points)
Replied 04 July 2011

Originally posted by : U S Sharma
	Originally posted by : Sonia Verma Mr. X had bought a house in 2007 for 10 lakhs... During 2009, he registered the same house in the name of Y & Z, his major Son & Daughter. - mode of transaction ...................gift to son and daughter or transfer against consideration? In 2011, the house is being Sold for 20 lakhs... How will the Capital Gains be computed? Will there be separate computation of C.G in the hands of Y & Z? Thanks Y & Z is liable for capital gain and its tax, cost of property would be taken from 2007 in case of gift, and 2009 in case of transfer against consideration.

completely agree

CS Bijoy (Expert) (6394 Points)
Replied 04 July 2011

Originally posted by : Devendra
	As per my knowledge, the Capital Gains shall be taxable in the hands of Y and Z in the ratio of their holding. You can wait for other members to comment on the same.

Agreed

1 Like

Rup Kumar (finance manager) (288 Points)
Replied 04 July 2011

The capital gain will be taxable in the hands of Y & Z in the ratio of their holding of property.

In this case the long term capital gain will be computed on basis of indextation of the year 2007.

C.Balaji (Learner) (1867 Points)
Replied 04 July 2011

Capital Gains gets shared by both the members in the ratio of their holding... Whether the Gain is Short term or Long Term, we need to know how the property has been transferred to Z and Y??