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Income tax treatment on sale of property at mumbai

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purushotham K

junior accountant

21 Points Posted on 16 September 2016

Hi,

let me state the details of the case.i am using "me" and "mine" where appropriate.

A building with 3 flats was purchased by my uncle in 1965. One flat was given to my parents and the remaining two was for my uncle.[my parents had given money in return for the flat, which does not exist in any document, though]. In 2015, the building went for reconstruction.My parents got 2 flats in the new 10-storey building in lieu of the flat they surrendered. The new building is under construction and will be completed by december 2016. My parents now want to sell both the flats in the new 10-storey building.

How will the income tax be computed? What will be the tax treatment for this sale?

thanks

Replies (1)

Abhimanyu

196 Points Posted on 16 September 2016

Thanks for the query,
I need to have a few questions replied,
In whose name the flats were registered?
In which kind of agreement did your parents got those two flats?
What papers does your uncle possess for the property?
Who is developing the new building, some contractor-builder or uncle or some other person?
Hope to have early reply,
But in my humble suggestion please consult with a CA near to you, in person, with all information and documents you have before making any decision since it could be sensitive matter.

Thanks,
Abhimanyu