Capital gain
P K Rajesh
(Querist) 13 September 2011
This query is : Resolved
Hi,
We have a property in Delhi owned by our mother which we are planning to sell. She plans to distribute the sales proceeds amongst us, her two sons, that is me and my brother. The cost of acquiring the house is Rs.35000/- in 1970 and the current market rate is Rs.40lacs.
1.What would be the capital gain?
2.Can she distribute entire sales proceed amongst us enabling us to invest in property in our name individually or jointly including my mother?
3.Or do we need to purchase a residential flat in her name alone?
regards
Rajesh with brother Anish
A V Vishal
(Expert) 13 September 2011
1.What would be the capital gain?
Ans, Please quote the value as on 1.4.1981 for computing capital gains.
2.Can she distribute entire sales proceed amongst us enabling us to invest in property in our name individually or jointly including my mother?
Ans, She cannot distribute the amount with out paying the tax however she can invest in a property jointly with you.
3.Or do we need to purchase a residential flat in her name alone?
Not necessary
Advocate Rajkumarlaxman
(Expert) 14 September 2011
I do agree with our expert A V Vishal. but alltogether if you purchasing the property of higher value than the sale proceeds for upgradation of your life still i think you can evade a major share of tax to be paid. it all depends upon the exact facts and circumstances of your case. check it out or put forth your legal aspects and as stated by our expert value as on 1-41-1981.
Guest
(Expert) 14 September 2011
Perfect advice by Shri A.V. Vishal.
prabhakar singh
(Expert) 14 September 2011
Shri A.V. Vishal has well advised,no add from me.
Raj Kumar Makkad
(Expert) 14 September 2011
I do agree with the opinion of Vishal
Shastri J.K.
(Expert) 14 September 2011
I also do agree with the opinion of Vishal
girish shringi
(Expert) 14 September 2011
Mr.Rajesh,
You can also find out the index rate as per the I.T.Act.
If Index shows LTCG is non taxable then no need to worry.
Biswanath Roy
(Expert) 15 September 2011
I agree with Mr Vishal"s opinion.
P K Rajesh
(Querist) 15 September 2011
Dear Experts,
Thank you for the very prompt and helpful comments.
1. I need one more clarification, how do I get to know the market value of the property as on 1.04.1981?
2. Aslo can I and my brother buy a property each with our mother as co-owner in each of them? this way the sales proceed amount will be equally shared between the two of us and should take care of mom's capital gain issue as well
regards
Rajesh with brother Anish
A V Vishal
(Expert) 15 September 2011
1. I need one more clarification, how do I get to know the market value of the property as on 1.04.1981?
Ans. Contact local registration office.
2. Aslo can I and my brother buy a property each with our mother as co-owner in each of them? this way the sales proceed amount will be equally shared between the two of us and should take care of mom's capital gain issue as well
Ans. No
