Hello All,
Great Forum! This is my first query. Here is my situation:
- A house which was in my Dad's name was sold in Nov. 2011 for 1.16 Cr. Land was brought in 1970 for 10K and /House built in 1975 for 50K
- The proceeds of the sale is kept in a Bank
- My Dad passed away in Feb 2012 leaving me and my Mom behind (I have no brothers/sisters)
Questions
- Is this transaction and inheritance (?) subject to long term capital gain? If so, is my Mom liable for 100% or both my Mom and I liable for 50% each?
- How should we file taxes?
- Should we make a Deed to split cash and maintain in seperate accounts?
- any other advise?
We'd like to buy two properties around 50L each.
So far, I've discussed with my Auditor and Lawer and got conflicting answers. My Auditor says, this proceed is not subject to any Capital Gains. However, my Lawer says my Mom and I need to register a Deed of our shares and both portions subject to Capital Gains.
Very confused. Please advise ASAP.
Thanks a lot in advance
CAclubindia
