Capital gain on property - portuguese civil code (income tax)
Amit
(Querist) 13 July 2014
This query is : Resolved
Dear Sir,
My Case pertains to Capital Gain on Sale of Property (Plot of Land) located in
Goa, where property was acquired by way of Inheritance.
Background: I am Resident of Mumbai staying with spouse in Mumbai. My Parents Jointly Owns a Plot of Land located at Goa ( which was given to them as Gift by my Grand Parents) through registered gift deed. In 2004, Father passed away and leaving behind My Mom, myself and sister ( both are married).
In 2006, We had entered Inheritance Deed under Communal Law of Goa, where Ownership of the said plot of Land transferred jointly in the name of My Mom, MySelf, My Wife, My Sister and her husband ( As per provisions of portuguese Law)
Now in May 2014, We have sold the Said Plot of Land to a Single Buyer. The agreement of Sale shows all 5 as the Original Owner of the Plot. No share or individual amount has been specified and Total Sale consideration was mentioned as Rs. 100 Lacs. Assume Cost of Acquisition as NIL.
Sale Consideration was directly paid by Buyer as below:
1. Mom - 60 Lacs
2. my Self - 20 Lacs
3. Sister - 20 Lacs
( No amount were paid to my wife and sis husband)
Entire TDS of Rs. 1 Lac ( 1% of 100 Lac) deducted in my Mom's Name by the
Buyer
Now to determine Capital Gain for AY 2015-16 i have following questions:
1. In Mom's Case, can i show Capital Gain as 60L or 100 L ( Acc. to portuguese
Law, her share is correctly arrived at 60)
2. In My Case - Rs. 20 Lac i have recd, will it be divided with My wife fr Cap.Gain
purpose ( 10 Lacs each), since the case is covered under Portugue Law. Pls. not both of us are staying in Mumbai and we have nothing in Goa, except this plot of
land which is now sold off.
3. If answer to Pt.2 is yes, can i and my wife Jointly invest in equal proportion in
1 Res. Property to avail 54F Cap. gain exemption. or we have to buy separate
house?
4. What will be the treatment in Sister's Case. Will she have to also equally
divide with her husband.
Understand this is a peculiar case, expecting a practical response for the action.
Many Thanks for your time and response
Amit
(Querist) 14 July 2014
Sir
This is not a Academic Query. It's purely query on conflict of law and since this is a platform of seasoned experts, request interpretation of law for the same.
To keep it short, there are mainly two query:
1. Whether Capital Gain to be divided on the said property, since the share was acquired by way of inheritance under portuguese law or to be taxed in the individual case ?
2. Section 54F Query - Can person acquire a Joint property to claim benefit of Sec 54F
Request your earnest feedback.
Many thanks for the co-operation and time
uttamtibrewal@yahoo.com
(Expert) 14 July 2014
dear Amit ..
You need to contact me as such question can not be answered at this forum...
Anirudh
(Expert) 14 July 2014
Dear Mr. Uttam,
What is the great secret about the issue?
When the querist is able to give his entire fact situation, why answer cannot be given here, if one knows the answer?
I am sorry, you are trying to take undue advantage of the predicament of the querist. In this LCI, many experts have given their answers freely, nobody asked anybody to contact them personally for receiving an answer.
Either give the answer here openly, if you know the answer, or refrain from asking persons like the querists to get in touch with you personally.
Raj Kumar Makkad
(Expert) 14 July 2014
This is highly irresponsible attitude of the expert to lure the querist to contact him especially claiming that the answer cannot be given in this forum.
This site is not for self promotion or self advertisement hence the experts are requested not to misuse the site and not to play with the innocence of the querists.
