banner_ad

CGT for Property Settlement

Tax queries 221 views 1 replies

R owns self- acquired vacant land of 2400 sft purchased 30 years back.  Recently he executed a settlement deed in favour of his wife S and elder brother N for equal share without any consideration.

N also owns an old house in another place and his wife & 2 sons are the legal heirs.

Now N due to his age and health  wants to his execute a settlement deed in favour of his younger son P for his share of the land property without any consideration.

Subsequently, if the land is sold jointly by S and P, and P invests his share of sale proceeds for a joint construction of a new apartment after demolishing the old house of his father (in which he is a joint legal heir) –

  • What is the CGT implication for N in the current year?
  • Will it be treated as Short Term or Long Term gain for P?
  • Any other implications

 

Replies (1)

Settlement of any property between relatives, by way of registered settlement deed, without any consideration; is regarded as GIFT, [in the eyes of IT act.]

So, if P invests the CG amount in any house property, of which he becomes owner; he can get the exemption u/s. 54F of the act. But without his own ownership or co-ownership, he cannot get the benefit.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details