Capital gain tax query

Tax planning 1738 views 4 replies

Mudit

Employed

33 Points Posted on 01 October 2008

We have an ancestral HUF property in U.P. 50% of the property is given on lease to various shop owners and balance is used for our residence. We plan to sell off this property. The HUF members in this property consist of 5 people including my father. We also have a property here in Mumbai, which is jointly owned by my father, mom and me.
Can you please help me on how I can save the Capital gain tax that will be realised by selling ancestral property. Would transfering father's share in Mumbai property to me and mom make him eligible for buying another residential property in his name and save Capital tax under section 54?
Thank you for the interest shown and helping me.

Replies (4)

Guest

460605 Points Posted on 07 October 2008

Originally posted by :Mudit
"	We have an ancestral HUF property in U.P. 50% of the property is given on lease to various shop owners and balance is used for our residence. We plan to sell off this property. The HUF members in this property consist of 5 people including my father. We also have a property here in Mumbai, which is jointly owned by my father, mom and me. Can you please help me on how I can save the Capital gain tax that will be realised by selling ancestral property. Would transfering father's share in Mumbai property to me and mom make him eligible for buying another residential property in his name and save Capital tax under section 54? Thank you for the interest shown and helping me.	"

Guest

460605 Points Posted on 23 October 2008

we are selling an ancestral property for 2 crores. WE ARE IN ALL THREE BROTHERS.WE ARE A FAMILY OF EIGHT. where and how should we invest the money to save tax.

Bharath Kumar

415 Points Posted on 23 October 2008

Originally posted by :Guest
"	we are selling an ancestral property for 2 crores. WE ARE IN ALL THREE BROTHERS.WE ARE A FAMILY OF EIGHT. where and how should we invest the money to save tax.	"

The net consideration (Sale proceeds - Indexed Cost of aquisition) needs to be invested in purchase or property / should be deposited in Capital gains deposit scheme and used within a stipulated period for purchase of property