Income tax
Ganesh Nagaraj
(Querist) 12 July 2011
This query is : Resolved
Dear sir,
My mother-in-law is a senior citizen - 76 years of age. She is a widow and a non earner. she is a Parsi.
She is selling the house, which her late husband had made. He expired 4 years ago.
The sale price for the house is Rs.32 lakhs.
Will she be taxed? Any parsi law applies here? IF so can you please give me some details and advise me please.
Thank you.
Regards
Ganesh
Raj Kumar Makkad
(Expert) 12 July 2011
There is no any exemption for Parsi or Hindu senior citizen lady or gent in such matter. Capital gain is to be calculated, if further house property is not furchased by seller within 2 years of sale of mentioned house. For calculation, cost price, date of purchase, date of sell are required to be known. It is better if you contact local lawyers dealing with taxation side with all relvant details mentioned by me.
Amit Soni
(Expert) 12 July 2011
To answer your query, details as mentioned by mr. raj is required. And it will be better for you to bring purchase deed & sale deed of the property.
Ganesh Nagaraj
(Querist) 12 July 2011
Thank you very much Mr.Raj Kumar Makkad, so also Mr.Prabhakar singh and Mr.Amit Soni.
This will guide me into the next step mentioned by you.
I shall write here again soon.
Thank you Sirs
Ganesh
A V Vishal
(Expert) 12 July 2011
Where the capital asset becomes somebody else property on account of death , the treatment under I T Act is same as would have been applicable in case original owner, had he lived at the time of sale. Section 49(1) of the I T Act makes it amply clear.
Since the cost of the asset is the cost to the original owner, the indexation to that cost is also to be done from the year of purchase by original owner in case of mode of acquisition is as per section 49 of the I T Act. This has been made very clear in section 55 of the I T Act where the cost of acquisition has been defined. Subsection 2(b)(ii) of section 55 is for cases like yours (i.e acquisition as per sec. 49 ) .
Your MIL becomes the owner of the property by mode specified in section 49(1) ,hence as per section 55(2)(b)(ii) ,cost to your Father in law shall be cost of the property inherited by your MIL.Therefore , the capital gain on sale of property , although taxed in your mother in law's hand , has to be computed by indexation from year the asset was purchased.
Ganesh Nagaraj
(Querist) 12 July 2011
Thank you Mr.Vishal. That throws somemore light. I am happy i came into this forum.
Thank you all.
Ganesh
