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Capital gains


Akula Srinivas (Accounts Officer)     10 March 2015

Akula Srinivas
Accounts Officer 
 59 points

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Dear Sir,

 

Please clarrify my issue

 

X purchased a Flat worth of Rs. 21 lakhs in 2006. X gifted the same to Y (his father) through gift deed with out consideration in 2008. Y sold that property in 2014 for Rs. 40.50 lakhs. 

How much is capital gains and whose hands it is taxable.

please do the needful

 

avater

Poornima Madhava (ACMA)     11 March 2015

Poornima Madhava
ACMA 
 513 likes  5579 points

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As per sec 49(1), CG is taxable in the hands of Y.

Indexed cost of acquisition to be computed with reference to the original purchase (i.e. 2006)

 

avater

Vishal Goel (Chartered Accountant)     11 March 2015

Vishal Goel
Chartered Accountant 
 139 likes  1663 points

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Hello, Clubing provision not apply
As per Section 62 in the Income- Tax Act, 1995 (Irrevocable Transfer of Assets)
Where an asset is transferred to any person
1. by way of trust which is not revocable during the lifetime of the beneficiary,
OR
2. in the case of any other transfer, which is not revocable during the lifetime of the transferee;
then all income arising from such asset, shall be included in the income of the transferee and not in the income of the transferor.
 
It will be taxable in Y hand.

 

Akula Srinivas (Accounts Officer)     17 March 2015

Akula Srinivas
Accounts Officer 
 59 points

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Thank you very much


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