ProgTick (N/A) (100 Points)
21 September 2011For example, if a person (U.S. citizen) sells residential house inherited by him and it results in capital gain of Rs. x, and he gives Rs. 1,50,000 to his wife and Rs. 1,50,000 to his 3 children each (over 23 years old), does it mean that he can deduct Rs. 4,00,000 from the gain?
The couple is not divorced.
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 21 September 2011
| Originally posted by : ProgTick | ||
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For example, if a person (U.S. citizen) sells residential house inherited by him and it results in capital gain ofx, and he gives1,50,000 to his wife and1,50,000 to his 3 children each (over 23 years old), does it mean that he can deduct4,00,000 from the gain? The couple is not divorced. |
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wife = 1,50,000
3*children x1,50,000 = 4,50,000
Total = 6,00,000
om US does 6,00,000 is written as 4,00,000?
how the amounts can be deducted from "x" where x is not reflecting any digit?
capital gain tax can not be avoided, it has to be paid by the seller, who is liable to pay cap gain tax, and he can distribute or spend the amount after paying capital gain tax only.
Mihir
(Wealth Manager)
(5293 Points)
Replied 21 September 2011
You can give the proceeds of the sale to your family members as you like but you have to account this income in your income tax return, and pay tax after proper computation.
Have you availed the exemptions available for capital gain tax? There are exemptions by which you can reduce the tax liability arising from this sale of property.
CAclubindia
