Nehru or Indira - who pays the capital gains tax?

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*********The year is 2012*******************

Nehru has a daughter Indira . Nehru is 50 yrs old and Indira is 25 yrs old . Nehru decides to buy a house in his daughter Indira's name. 

What is the Property Cost - 25 lakhs

Who pays for the property - Nehru(the proud dad)

How does Nehru pay for the property - by demand draft ,transaction of 25 lakhs was done from Nehru's account.

Who is the property registered under - Indira is registered for the property . 

 

************Fast Forward to 2020***************

Nehru decides to sell the house. 

Sell Price - 30 lakhs

The buyer(Modi) pays the Amount to whom - 30 lakhs is deposited in Indira's account since the property is registered under Indira's name.

Questions :

  1. While buying the property , even tough the transactions was done from Nehru's account ,the property is registered under Indira's name - is this legit?
  2. In 2020 - who pays Capital gains tax(if any) -Nehru or Indira ?  
Replies (4)
Irrelevant

@ Sabyasachi what is irrelevant ?

Ideally Indira is the owner...coming to who pays capital gain( there is no gain after indexation) so no capital gain tax.
@ Rahul.....
1. it's legitimate transaction... Father to daughter, relative..
2. Indira Pay LTCG Tax, if any because it's proud daughter, having legal and beneficial right on property.


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