Hi Experts,
i have a land in my mother's name which i want to sell.
Now she used to file her returns a few years back, as my dad ran a small business in her name.
She has not been filing anymore since the last few years.
Now when we sell the property, and a sum of, suppose 50L is deposited in her account, what are the implications? how do i handle the situation?
She is liable to pay capital gain tax. She may save tax by invested in bonds within 6 months or another property within 2 years.
If it is rural agricultral land, then no need to worry, since it will not be treated as capital asset u/s 2(14).
If it is capital asset then you will be eligible for exemption u/s 54B provided
- It must be used by assessee or his parents for agricultural purpose in last 2 preceding year before the date on wich transfer take place.
- Whole of the capital gain must be used for purchasing agriculture land within 2 years from the date of transfer.
- The new asset purchased should not be sold within 3 years from the date of purchase.
- If the capital gain is not utilised within the due date of filing of return u/s 139(1) then it should be deposited into an account under capital gains account scheme (CGAS).
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