lolz...looks like your client and her mother both are going to pay the tax...
rz's
(TRAINEEE)
(243 Points)
Replied 11 July 2011
lolz...looks like your client and her mother both are going to pay the tax...
Sunshine
(Helping All)
(10575 Points)
Replied 11 July 2011
| Originally posted by : Suraj (Thirsty for KNOWLEDGE) | ||
 |
Ya..the mother asked the purchaser of land to deposit the amt directly to both of their bank accounts..... |
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great mom!! :)
Suraj S
(Audit Executive)
(335 Points)
Replied 11 July 2011
The thing is my client have to avoid any headache from IT Dept in the future as the banks wud have already informed about remittance of this amt thru their AIR......
rz's
(TRAINEEE)
(243 Points)
Replied 11 July 2011
but money is depsited directly into childrens account by the purchaser how can it be gift from mother..
Sunshine
(Helping All)
(10575 Points)
Replied 11 July 2011
How can she ask to so..?? still it will be taxable in her own hands only and children will get away coz its an income foregone...not surrendered inder any act......
Suraj S
(Audit Executive)
(335 Points)
Replied 11 July 2011
If the client's mother files the return showing the complete LTCG and my client files a NIL Return, will it be O.K....and also in case of any future IT Dept notices to my client can such filing of return by the mother be sufficient ground to withstand their "interrogation!!!"
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 11 July 2011
wen she is alive the consideration will always come to her hands only, she will discharge the LTCG tax liability , then she is set free to distribute or spend the amount where ever she wants.
direct credit to another account other than seller is doubtful about the transaction even, tomorrow seller can put a claim to buyer that she did not got money, so registration is void.
Sunshine
(Helping All)
(10575 Points)
Replied 11 July 2011
sir aap great hain...thank u.!! thanks fr the wonderful discussion...
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 11 July 2011
as the query itself told that money divided between the client and his sis, so its deemed that they are absolute owner by virtue of inheritence.
when the reply dragged mother in picture then the query itself is in wrong direction, not only incometax but everything is under shadow of law doubts.
CA,CMA,CS Karan Gogia
(Employed)
(230 Points)
Replied 12 July 2011
capital gain should be charged in the hands of ur client mother
money being deposited in ur client n her sister a/c will amount to gift wich is exempt as it is from relative
CAclubindia
