Income tax on sale of property owned by mother

Tax queries 180 views 6 replies

Ritesh Chandra Srivastava

Manager

30 Points Joined April 2018

Dear Sir/Madam,

My mother owns a property (house build on 2200 sqft. of land), Now she has decided to sale this property. She will be getting Rs. 70 Lac approx. Which she is going to distribute in three parts. One for herself, one for me and one for my younger brother. So we will be getting Rs. 23.33 lac each. My question is --

1- Do Capital Gains Tax has to be paid on Rs. 23.33 lac which I will receive ?

2- If yes , how much capital gains tax has to be paid on this amount ?

3- How this will be calculated ?

4- What Are the ways to avoid it ?

Warm Regards

Ritesh Srivastava

Replies (6)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

209862 Points Joined July 2016

Capital gains liability arises over owner of the property, for any capital gains aeeived over transfer.........

Are you owner of the property being sold?

If no, you are not liable to pay any tax.....

Ritesh Chandra Srivastava

Manager

30 Points Joined April 2018

Dear Sir,

Thanks for your reply.

For the sake of clarification, this propery is owned by my mother. Now she has decided to sell it and distribute the money in to three parts. For herself, for me and for my younger brother.

So my question is that --- Will I be liable to pay any capital gain tax on the money received from my mother ?

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

209862 Points Joined July 2016

As you are not owner of the property....... how can capital gain tax liability arise over you?

When she disributes some amount to you both, of course after compliance of any tax liability over it, it will be treated as gift/loan in your hand, which is not taxable.