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LTCG shared between family members

Tax queries 439 views 6 replies

Hi, 

My father in law(now expired) had a property for which current surviving legal heirs are my daughter and my sister in law .. 

My sister in law(with our consent) had sold the property in January this year and transferred the half of the sale proceeds to my daughter's account. 

My daughter's name doesn't reflect in registered sale deed and no direct payment is recived from the buyer.

I need to file or can I file income tax returns showing capital gains under my pan as my daughter is minor. 

Since we have received the proceeds can we file itr under my name or only my sister in law has the right  file the itr... 

Replies (6)

was your consent oral or in writing. Did it indicate the percentage of ownership in it?

In whose name the share Scripts are???
Hi,
As there are two legal heirs, the sale proceeds from the property is taxable in the hands of both. As your daughter is minor, you have to comply with Sec. 64 of Income Tax Act.

the consent was oral. there is no written agreement...no legal heir certificate also. its by understanding we have shared the sale proceeds from sale of property.

you should really read the query. it helps a lot instead of just spamming.

see, in absence of the legal heir certificate and any formal NOC and your daughter's name not on paper, instead of going for taxation for each heir, I would suggest the sister in law handles taxation in her own return. The net of taxes amount can be equally divided and be shown as a gift to your daughter. 


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