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Cg tax on sell of property owned by mother

Tax queries 177 views 1 replies

Dear Sir/Madam, 

My mother owns a property (house build on 2200 sqft. of land), Now she has decided to sell this property. She will be getting Rs. 70 Lac approx. Which she is going to distribute in three parts. One for herself, one for me and one for my younger brother. So we will be getting Rs. 23.33 lac each. My question is -- 

1- Do Capital Gains Tax has to be paid on Rs. 23.33 lac which I will receive ? 

2- If yes , how much capital gains tax has to be paid on this amount ?  

3- How this will be calculated ?  

4- What Are the ways to avoid it ?   

Warm Regards 

Ritesh Srivastava

Replies (1)
Dear Ritesh,
entire capital gain will be taxable in the hands of your mother and she is supposed to pay tax on that first your mother has to bear the entire tax and then she can gift the remaining amount to you and your daughter. gift received from relative is exempt and not taxable in the hands of recipient as per section 56 of the Act.
2 option is this your mother invest the amount in any qualifying assets under section 54, 54b 54F, 54Ec etc and then gift the qualified asset to you and your daughter which will reduce liability of tax.
please discuss this with your tax consultant to understand it in detail.
regards
Kanj Goel


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