Capital Gain Doubt

Page no : 2

Manoj BG (Tax Professional and in Service)   (1795 Points)
Replied 04 July 2011

Definately a long term capital gain as all friends said rightly. Cost to previous owner would deemed to be cost of acquisition for y and z in the tratio of therir holdings... Such shared cost of acquisition would be indexed with cost inflation index. and gain would calculated accordingly..

 

 

Thanks and regards,

 

Manoj B. Gavali



CA JAGJIT (Cleared CA in first Attempt)   (142 Points)
Replied 04 July 2011

Transfer of House from X to his sons is not taxable as Capital gains as it is gift and same when being transferred to Third party Y and Z are liable for Captial gains tax


Navien Mishrra (Company Secretaries) (21 Points)
Replied 04 July 2011

cost of acquistion is given 10 lakh,

no matter when the house got registered in x and y name,

capital gain 10lakh,,ie. 20lakh-10 lakh

simply indexed cost of accquisition will be calculated on 10, 00, 000

ie, 12,90,381,,, 1000000*711/551

capital gain 20 00 000-12 90 381=7 09 618.

tax to be paid by x and y in ratio of hodilng the property,

suposse if property is held 50-50, it would be 354809 each,:)

if there is any error, then please rectify


CA Shashank Kumar Gupta (CA ) (42 Points)
Replied 04 July 2011

it is Taxable in the hand of Y & Z in the ratio as the ration in which they received the property.

and the cost of acquistion for calculation of capital gain would be the cost of X



(Guest)

Computation of capital gain :-

Period of holding :- 2007 to 2011 morethan 36months

FULL VALUE OF CONSIDERATION                                              2000000

LESS : EXPENSES ON TRANSFER                                                    NIL

NET CONSIDEARTION                                                                     2000000

LESS:- INDEXED COST OF ACQUISITION                                      1369942

      ( 1000000*711/519)

GROSS LONG TERM CAPITAL GAIN                                                 630058

lESS: eXEMPTION U/S 54 TO 54H                                                       (IF ANY HAS TO BE DEDUCTED)

LONG TERM CAPITAL GAIN                                                                630058

NOTE:-

As per sec 46 & 47 the above transaction is not regarded as transfer hence no question of capital gains will be taxed in the hands of father..

Hence capital gains will be taxed in the hands of Y & Z in proprotion of their holdings..

 

 




Mehul Jain (ROC and R&D Executive) (59 Points)
Replied 04 July 2011

It will be long term capital gain as the holding period will be taken from 2007 while the indexed cost of acquisition will be taken from 2009 and it will be taxable in the hands of  Y & Z in the ratio of their holding since they are the registered owner of the property.


Leena (Tally Expert) (46 Points)
Replied 04 July 2011

Y & Z is liable for capital gain and its tax, in the ratio of their holding

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


 


CA,CMA,CS Karan Gogia (Employed) (230 Points)
Replied 04 July 2011

Section 56(2)(VII) is being introduced from 1.10.2009 v.i.a finance act 2010 further amended by finance act 2010.

As per the above section such gift is taxable in the hands of receipient i.e major son & daughter in proportion of their share(assuming it is being transfered without any consideration) in the PY 2009-10.

now on sale the capital gain will be calculated in the hands of Daughter and son in the said proportion, for this purpose

COA=as per section 49(4)=should be the amount taxed in the hands of son & daughter in PY 2009-10

period of holding=should include include the POH of the previous owner i.e father as this transaction is covered by 49(1).

Indexation=In numinator index for the year of transfer...in denominator index for year of first aquistion by transferor(son & daughter) i.e 2009-10

 

any doubt???


Paras (Mcom,CA Final) (122 Points)
Replied 04 July 2011

both are taxable equally .... ten lakhs will be allowed as indexed cost of acquisition .


CA Saiyum khan (Practicing CA) (685 Points)
Replied 04 July 2011

Originally posted by : Mehul Jain

It will be long term capital gain as the holding period will be taken from 2007 while the indexed cost of acquisition will be taken from 2009 and it will be taxable in the hands of  Y & Z in the ratio of their holding since they are the registered owner of the property.

Agreed




@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 08 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.

Shah Tarun (Student) (800 Points)
Replied 09 July 2011

Here Y n Z  are liable to LTCG in the ratio of holding because period of holding of previous owner is to be considerd however benefit of indexation is available only from 2009 and not from 2007...

Sec49.
1[(1)] Where the capital asset became the property of the assessee—

      (i) on any distribution of assets on the total or partial partition of a Hindu undivided family;

       (ii) under a gift or will;

       (iii) (a) by succession, inheritance or devolution, or

            2[(b) on any distribution of assets on the dissolution of a firm, body of individuals, or other association of persons, where such dissolution had taken place at any time before the 1st day of April, 1987, or]

             (c) on any distribution of assets on the liquidation of a company, or

             (d) under a transfer to a revocable or an irrevocable trust, or

             (e) under any such transfer as is referred to in clause (iv) 3[or clause (v)]  4[or clause (vi)]  5[or clause (via)] 6[or clause (viaa)] 7[or clause (vica) or 23[clause (vicb) or clause (xiiib) of section 47]] of section 47;

      8[(iv) such assessee being a Hindu undivided family, by the mode referred to in sub-section (2) of section 64 at any time after the 31st day of December, 1969,]

      the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the property acquired it, as increased by the cost of any improvement of the assets incurred or borne by the previous owner or the assessee, as the case may be.

      9[Explanation.—In this 10[sub-section] the expression "previous owner of the property" in relation to any capital asset owned by an assessee means the last previous owner of the capital asset who acquired it by a mode of acquisition other than that referred to in clause (i) or clause (ii) or clause (iii) 11[or clause (iv)] of this 12[sub-section].]

 


anish (142) (36 Points)
Replied 10 July 2011

hi friends can u please tell me what is the procedure for liquidating a 54EC bond(Namely REC and NHAI bond)


Paras (Mcom,CA Final) (122 Points)
Replied 11 July 2011

54ec bonds can only be liquidated on their maturity .




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