Income tax liability on 22 laks received on land sale by housewife aged 66yrs
mrgop
(Querist) 29 March 2015
This query is : Resolved
My mother aged 66 yrs had sold land, which was her own name, for a total of 22 laks in FY 11-12, and 16 laks (8+8) was given to two sons even though they had no legal share on it. She is housewife and has no other income.
So, what would be her income tax liability on it? She had not paid any tax or filed tax returns yet.
Is there any possibility of raising any issues on non paying/filing tax returns? If yes, how to rectify the same at this stage since the transaction was in FY 11-12.
Anirudh
(Expert) 29 March 2015
Dear Mrgop,
Instead of asking whether there is any possibility of raising any issues non-paying of tax, why don't you honestly say that your mother has received notice u/s. 148 of the I.T. Act?
Please note, non-paying the capital gains tax and non-filing return can be called in question by the Assessing Officer.
It is your mother who sold the property is liable to pay the tax. If it was long term capital gain then she is liable to pay 20% of the gain as capital gains tax.
mrgop
(Querist) 29 March 2015
She has not received any notice from Income tax department yet. If received one, then why should I hide it here?
Actually the land was brought three generations back and was being transferred through inheritance to next generation.
In came to know that long term capital gain is calculated from purchase value,sale value,Cost inflation index of year of purchase and Cost inflation index of sale. So, in this case purchase value and Cost inflation index of purchase year are unknown.
So, just confused how to calculate the long term capital gain from this sale.
Guest
(Expert) 29 March 2015
Mrgop,
I doubt, if it is your real problem and not an academic query. In fact, I wonder if you have awaken only now to calculate long term capital gain after three years of accrual of income!
However, your mother cannot be absolved of the liability of filing of tax return to show the income of 22 lakhs and to pay tax, if due. Still further, her sons whom she gave 8 lakhs each were also required to account for the amount of income of 8 lakhs each and to submit tax return to the conscerned assessing officer.
Surrender K Singal
(Expert) 29 March 2015
Sons may not have any tax liability as it is their mothers money being shared to be inheritrd . Capital gain tax liability I'd only on the owner who sold. She can wait for notice that MAY enable filing of such stale return
Rajendra K Goyal
(Expert) 30 March 2015
Consult local tax adviser and show him all the documents.
If you have not deposited the tax in time, (Seems 4-5 years in arrears in your case), heavy interest and penalty has to be paid.
T. Kalaiselvan, Advocate
(Expert) 03 April 2015
The tax consultant or a local auditor will properly guide and advise you in this matter, why dont you follow the right path in this regard?
