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Exemption on cg tax

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suja pirama

126 Points Posted on 27 March 2023

Sir is there any time frame for selling property recd as settlement deed for claiming exemption from cg tax. My friend is receiving a land from his mother as settlement deed and is planning to sell it and to buy a new house.so I would like to know whether cg on sale of land can be used for his first house buying.pl clarify thank you

Replies (7)

Quick Summary

This discussion clarifies Capital Gains Tax (CGT) exemption rules for property received through a settlement deed. It explains that the holding period of the donor (mother) is added to the donee's (son's) holding period. Therefore, the son does not need to hold the property for two years himself if his mother has already owned it for a significant duration, allowing him to potentially claim CGT exemption when selling to purchase his first home.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 27 March 2023

1. Yes, minimum two years of aggregate holding by her mother and himself.

MPR Sanjay Kumar

1675 Points Posted on 27 March 2023

@ Honourable Dhiraj Lal Rambhia sir, Typically cash withdrawal entry is

Cash a/c Dr

To bank

but why in Contra voucher it is vice versa???

could you please explain me

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 27 March 2023

Contra voucher doesn't change in case of cash withdrawal or cash deposit. It treats both cash or bank similar.

suja pirama

126 Points Posted on 28 March 2023

Thank u sir fir ur response. Mother owns the land for past 10 yrs. Is it compulsory that the son after getting settlement deed should hold for 2 years to avail cg exemption If he wants to sell .