Capital gain on partition of ancestral property.
Dear Sir, This is regarding Capital Gain Tax/Income tax on amount received as consideration towards partition of ancestral house/property. My wife's family house is being partitioned. The total value of the house and plot is Rs.54,53,000. This is being divided among the mother and eight children. Each receiving Rs. 6,07,000. One of the brother is compensating the other 8 members as consideration. In this scenario: 1. Does the amount received as compensation by members attract capital gain tax and/or income tax? If it does, what are the methods by which the member can save on capital gain tax and/or income tax?
Replies (1)
Partition per se no transfer as per section 47. However there is an extinguishment of right therein the property by accepting consideration. Hence, it amounts to transfer u/s 2(47) and capital gains will attract.
Recent Topics :
- Bill-to-ship-to material at client site, project c
- Export previously now to be considered domestic sa
- Pan surrender via online
- EPFO Portal Issue – Unable to Save Employee
- Plant & Machinary
- ITC reversal after supplier amended the recipient
- GIFTS TO USEFUL CONTACTS ON FESTIVALS INCOME TAX
- INTEREST ON REFUND OF TDS
- Input tax claim related
- User not found in MCA portal
Related Topics :
CAclubindia
