Whether gapital gain will be levied?

Tax planning 146 views 2 replies

ANIRUDH MIMANI

Audit Assistant

64 Points Joined May 2012

I had a client who has sold out the the flat alloted to her.

A land was purchased by 3 Brothers.in 1964 jointly.Such Land was got partition in 06-07 among such brothers.in 1989 One of the brother has been died.The property belonging to such Brother has been divided among their legal hier & divided into 7 parts among its spouse, sons& daughter.all the person to whom land was transferred as per will mutually decided to give such land to the PROMOTER.the promoters will allot flat in respect of such LAND.Flat was alloted to them in DEC2015.

One of the daughter to whom flat was alloted against land from promoter has sold such land in march2016.

What is the implication of tax unfer income tax act..What is the remedy to avoid tax..How i can protect my client from such ..

Replies (2)

CMA Poornima Madhava

CMA

13117 Points Joined May 2009

If there is a capital gain, tax is required to be paid and it cannot be avoided. However, one can claim exemption from capital gain by investing in house property, bonds etc.

ANIRUDH MIMANI

Audit Assistant

64 Points Joined May 2012

in my opinion there will be 2 tax one is Long Term & another is short term.only long term capital gain can be saved by investing in bonds & hp...but short term cnt bee soo how will these short term capital gain can be avoided.