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Income from house property

chetan (accountant) (321 Points)

11 March 2013

I have a recd Rs 12 lacs as a part of share from house hold which was in name of my mother as i would like to know the tax implication on this issue. the total consideration was Rs 36 lacs and same has been divided in 3 brothers.

Please help me in above matter. the transacation date is 01.03.2013.

Regards

chetan

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4 Replies

ADITYA AGARWAL (ARTICLE) (21 Points)
Replied 11 March 2013

U have to give tax under the head capital gain. Divide cost of acquisition in 3 parts And do indexation of 1 part means of ur share if house is hold 4 more than 3 years then 12 lacs - indexed cost of acquistion is your tax under the capital gain.

Sumit Agarwal (Article Assistant (CA-Final)) (393 Points)
Replied 11 March 2013

According to me,there is no tax implication in ur case.since the house is in ur mother's name and you are merely inhereting it.instead ur mother is liable for capital gain if any..correct me if am wrong

VIKAS.A (SOMETHING IS BETTER THAN NOTHING) (1095 Points)
Replied 12 March 2013

YES, I AGREE WITH SUMIT,THE CONSIDERATION RECEIVED BY U FROM UR MOTHER IS NOT TAXABLE,AND THE CAPITAL GAIN/LOSS WILL BE FOR UR MOTHER

AND THE TAXABLE INCOME WILL BE

SALE CONSIDERATION-EXPENSES FOR SALE-COST OF AQUSITION AFTER INDEXATION

IF THE ASSET IS HELD FOR MORE THAN 3YRS THEN LONG TERM CAPITAL GAIN IF NOT SHORT TERM CAPITAL GAIN

Mihir (Wealth Manager) (5293 Points)
Replied 12 March 2013

You need to first compute the capital gain tax arising from this sale of 36 lacs. Since this property is in your mother's name, she will have to either invest in another property or invest in some bonds in order to save capital gain tax.