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Sale of property after relinquish deed

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Manav

Service

2 Points Posted on 09 April 2018

Need help on tax implication

1. Father acquired property in 1982 For Rs 1.5 Lacs

2. Both Parents expired in 2015

3. Only 2 brothers are class I legal heirs, Brother B relinqusihes his share of the property to brother A in 2017 ( on the un written agreement that 1/2 the sales proceeds shall go to brother B)

4. Property sold for Rs 60 Lac in 2018

5. Brother A transfers Rs 30 Lac to Brother B

Q1 Is there any tax implication LTCG or STCG on brother A? specially if as per indexing/FMV of the poperty there is no such liability ( considering base year as 2001)

Q2. is there any tax liability on transfer of Rs 30 Lac to brother B? on A or B?

Q3 If both brothers reinvests the sales proceeds in acquiring new properties, is there any tax liability ?

Replies (1)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212218 Points Posted on 10 April 2018

1. As your Relinquish deed is not registered, it is not valid. May be the sale deed would have been signed by both brothers !!

2. In any case when there is no tax liability (as per your calculations), there is no need to do all such alternatives. Better declare tha sales in both PAN, and distribute the tax paid capital after assessment.

3. " is there any tax liability on transfer of Rs 30 Lac to brother B? on A or B?

No, provided loan or Gift....

4. If both brothers reinvests the sales proceeds in acquiring new properties, is there any tax liability ?
As per your statement, if there is no LT capital gains based on indexation of COA based at 2001, the query would not arise....