Sale for housing property

Tax queries 153 views 2 replies

Sangeetha

Business

39 Points Posted on 17 February 2018

A senior citizen in chennai wants to sell his individual house for 20 lakhs and give the full amount as equal sharing to his two sons residing in two different places of tamilnadu. They planning to buy houses in the place they are residing.

My question is.
1. Senior citizen was living in tat house for nearly 15yrs. If he sells his house will he be taxed for long term capital gain?

2. Selling house is in senior citizens name. And his son gonna buy house in their own name. If their father gives his house sold amount as settlement to his sons how it be accounted for taxation on both father and sons hand?

3. On other hand if senior citizen gives only 10lakhs to both son in total and in balance 10L if he purchase a land in his own name. Then how this situation will be accounted for tax purpose?

Kindly state me the variation if land is sold in FY 2017 -18 and if sold in FY 2018 -19.

Thank you.

Replies (2)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211715 Points Posted on 17 February 2018

1. Yes. Long term capital Gain.

2. Once father pays off his LTCG tax liability, there will not be any additional tax liability over both of his sons.

3. No change in tax liability over father.

4. No major change even if it sold before march or after that, only about 5/6 % inflation may reduce some tax amount.

5. Suggestion......... If father becomes joint holder in any property purchased by his son, tax liability would reduce to great extent or even become NIL.