if a person gift a land to his sister and after a week sister sells the land, what will be the effect on tax? is it capital gain or other income?
please suggest.
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Sale of land
Replies (6)
It will be a capital gain in the hands of your sister.
The date of acquisition of land will be deemed to be date on which you acquired land.
It will be LTCG if it is acquired by you before three years or more
The date of acquisition of land will be deemed to be date on which you acquired land.
It will be LTCG if it is acquired by you before three years or more
Whether the gift is revocable or irrevocable?
Mr Veeresh, Gift is always irrevocable dear
Thank you so much Mr. Pravin. I was in doubt about the acquisition date.
Thanks
It's a Capital Gain and will be taxable in the hands of your Sister. The indexation benefit ( if LTCG ) will be calculated from the date when you acquired your Property.
In case of acquisition of Capital Asset by the way of interalia Gift as under 49(1), period of holding shall include the period of holding of previous owner also.
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