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Capital gains

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tarun kumar

any

71 Points Posted on 02 March 2020

Mr. A purchased a land in the name of his father. A have four brothers.
Now after the death of his father he wants to sale the land.
All the brothers have given noc to him.
What is the capital gains tax liability?
Is the capital gains tax liability for all the brothers or for only Mr. A?
please let me know

Replies (4)

Quick Summary

This discussion clarifies capital gains tax implications when selling inherited land. Initially, it was suggested tax liability would be proportionate to each brother's share. However, with a No Objection Certificate (NOC) from all brothers to Mr. A to sell the land, the situation changes. If the land wasn't formally transferred to Mr. A before the NOC, he may need a succession certificate. Once this is established, the capital gains tax liability will fall solely on Mr. A, based on the land's value at the time of succession.

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 02 March 2020

Since the land was bought in father's name, it is taxable proportionately As per the share of each person in the land.

tarun kumar

any

71 Points Posted on 02 March 2020

Ok but they all given noc to Mr. A to hold and sale the land

Bharat Changela

36 Points Posted on 02 March 2020

If before NOC the land was not transferred to A, then Mr A will have to get succession certificate in his sole name. At that time the base Value of land will be mentioned in Succession Certificate. And court will leavy stamp duty accordingly. Then on Sale of the land, the total Capital Gain tax liability will be on A.