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Query

ritesh (ca final articled assitant) (176 Points)

19 January 2010

hi all please help me in solving the following practical case:-

Mrs A purchased a property on 24/10/1964 and she died on 21/02/89. After this there was a dispute between all of her sons and finally settlement was made by transfering property to Mr B., one of her son. Mr. B died on 28/9/07 . His only son Mr C transfered the property in the name of his wife Mrs D without any consideration for Rs1540000/- on which Rs 67000/- was paid as the stamp duty by his wife. His wife sold the property for Rs 1650000/- and again purchased a property for Rs 1417500/- including stamp duty. Please tell me about the tax treatment in such case.

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2 Replies

ajay lohiya (article) (69 Points)
Replied 22 January 2010

dear Ritesh,

first clear the kind of property which was purchased by Mrs.B& also clear in which money was invested by Mrs.D

ritesh (ca final articled assitant) (176 Points)
Replied 22 January 2010

Here is the rectification:-

Mrs A(Grandmother of C) purchased a houseproperty on 24/10/1964 and she died on 21/02/89. After this there was a dispute between all of her sons and finally settlement was made by transfering the aforesaid Houseproperty to Mr B., one of her son. Mr. B died on 28/9/07 . His only son Mr C transfered the property in the name of his wife Mrs D for Rs1540000/- on which Rs 67000/- was paid as the stamp duty by Mrs D. Actually Mrs D did'nt had the money i.e the consideration of rs 1540000/- is fake. His wife sold the property for Rs 1650000/- and again purchased a property for Rs 1417500/- including stamp duty in the joint name of herself and her husband. Please tell me about the tax treatment in such case. Thanks in advance