Capital gains

Tax planning 484 views 3 replies
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Accounts Officer
59 Points Joined February 2012

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

 

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On 10 March 2015 at 15:45 Report
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CMA
13117 Points Joined May 2009

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)

 

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On 11 March 2015 at 00:11
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Chartered Accountant
1693 Points Joined April 2014
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.

 
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On 11 March 2015 at 00:56
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Accounts Officer
59 Points Joined February 2012

Thank you very much

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On 17 March 2015 at 18:30


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