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Capital gains under Sec 54EC

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Mumbai8

Other

29 Points Posted on 08 July 2024

My siblings and I inherited a residential flat in cooperative society located Mumbai from our deceased parents.

I would like to either relinquish my rights or gift my share, without any consideration in favour of my siblings. My siblings will eventually sell the property and plan to invest the gains from the sale per rules in Sec 54EC bonds.

My questions:

Qs. 1: Would either option that is relinquishment deed or a gift deed, on transfer between siblings attract stamp duty ?

Qs 2: Would each of my remaining siblings be eligible to invest their portion of the "gains from the sale" up to Sec 54EC limit of 50 Lakhs per Assessee? or is the limit of 50 Lakhs per property? They do not have any prior Sec 54EC investment.

Thanks in advance.

Replies (4)

Quick Summary

This discussion clarifies capital gains tax implications for siblings inheriting property. It addresses whether relinquishing or gifting a share attracts stamp duty in Mumbai, confirming that stamp duty is applicable. Furthermore, it confirms that each sibling can individually claim the Rs 50 lakh limit for investment in Sec 54EC bonds based on their share of the gains, rather than a per-property limit.

CA Aakarsh Jain

4330 Points Posted on 08 July 2024

1) Stamp duty will be applicable.

2) Yes, they can claim sec 54EC per assessee.

CA Aakarsh Jain
ca.ajaakarshjain16 @ gmail.com

Mumbai8

Other

29 Points Posted on 08 July 2024

Thank you.

what rate stamp duty would be applicable for transfer of property, without consideration be applicable amongst siblings. The The property is located in Mumbai.

sabyasachi mukherjee

Profession

19978 Points Posted on 08 July 2024

Infrastructure bonds

Mumbai8

Other

29 Points Posted on 10 July 2024

Thank you.

what rate stamp duty would be applicable for transfer of property, without consideration be applicable amongst siblings. The The property is located in Mumbai.