In 2004 my mother sold a residential property in her name and purchased a flat in her name and also in the names of her daughter in law and grandson. She paid the applicable capital gains tax. Names of her daughter in law and grandson were included for convenience as she was quite old. This property remained vacant and was used by her only for residential purpose. Now the property has been let out and rent received equally by the three co owners and TDS is being deducted.
Query:1) Was she supposed to pay any gift tax or did she violate any rules 2). If yes how to rectify it with minimal damage 3) Will this getting rent by the d-in- law and grandson create any problem?
CAclubindia
