Santosh (PM) (24 Points)
18 May 2012Hi
Wanted to check the tax liability from this transaction
We are two sons and have one house in the name of Father. Father splits the house in equal parts and the one son registers the property in his name and pays the second son his portion in cash. Is the money which is received by the second son Taxable since it is from a house transaction, does it mean that Capital gains from the same have to be reinvested in the house to be purchased within 2 years
ankita Goyal
(Student CA Final)
(113 Points)
Replied 18 May 2012
Yes . The money received will have to be deposited in the capital gain saving scheme for construction of house within 3 years or purchase within 2 years . Otherwise the amount will be taxable in his hands.
If I am wrong pls correct me.
Thanks>>>>>>>>>>>>>>>>>>>>>>>>>
ankita Goyal
(Student CA Final)
(113 Points)
Replied 18 May 2012
Yes . The money received will have to be deposited in the capital gain saving scheme for construction of house within 3 years or purchase within 2 years . Otherwise the amount will be taxable in his hands.
If I am wrong pls correct me.
Thanks>>>>>>>>>>>>>>>>>>>>>>>>>
CAclubindia
