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Capital gains or not?

Tax queries 145 views 3 replies

Hi,

Story so far: Mother has 2 daughters. Sells a house registered on her name, through a POA given to the eldest daughter. The eldest daughter having the POA executes the sale and the buyer transfers the sale consideration to the eldest daughter. However to be on a safer side, the buyer also transfers some part of the sale consideration to the 2nd daughter.

Mother passes away within days of the sale and per the will of the mother, eldest daughter transfers 50% of the sale proceeds to the 2nd daughter. How should tax be paid in this case? 

Thanks

Replies (3)

When the sale executed, the owner/transferor was alive......... (though deed executed vide GPA)

Tax liability and complience of ITR filing, of mother, should be fulfilled by her legal heir.

Thanks Dhirajlal ji. Out of curiosity, do you think the scenario would have been different if the mother had passed away before the completion of the deal?

Yes.............. In that case the house along with other assets of mother would have been transferred to legal heirs first......


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