capital gains tax
Querist :
Anonymous
(Querist) 07 June 2011
This query is : Resolved
my father had purchased through a GPA during april 2004, a landed property in bangalore for Rs.5,95,000/- and the same has been sold during feb, 2011 for Rs.19,00,000. now to avoid capital gains tax he is planning to go for construction of a house(not interested in purchase of a ready house) under sec.54F of IT act. He does not posess any site for construction. my wife (that means my father's daughter-in-law) has a site and she is ready to transfer/gift 50% of the site to his name for construction by my father.
here for gifting the site, it is understood that, the gift deed should be subjected to stamp duty of 6% of the value which becomes very huge and not afordable by my father. another way out is to gift to me by my wife and inturn me gifting to my father, so that the gift deeds should be subjected to only Rs.1000/- stamp duty+ Rs.500/- regn. fee as learnt from some sources. kindly confirm my view.
secondly, instead of the above procedure, please clarify whether my wife and my father can enter into a joint vernture agreement/joint development agreement so that on the site my wife is posessing, my father can go for construction? if so what are the legal procedure to go for joint development deed?
since my father has to open a capital gains account before 31 july (date for filing IT return, i request to please clarify me on the above aspects.
Raj Kumar Makkad
(Expert) 07 June 2011
It is better if you wife gifts in your favour and then you gift it to your father. It is not only cheaper but also less time consuming and simple procedure.
Querist :
Anonymous
(Querist) 08 June 2011
thanks Mr.Rajkumar makkad.
