Income tax / property gain
Vikash Jindal
(Querist) 03 March 2016
This query is : Resolved
Dear Sir, Madam,
My father and my three uncles had a property on their names since 1968. As a mutual agreement in family, this property was belonged and owned by my father, and all the amount gained by sale of this property shall belong to my father only. With this agreement, that property has been saled by all four brothers in Dec 2015. All the cheques were taken on the name of my father for this property.
Now my uncles has a concern (which looks logical as per their prespective) that as they are not benefited with the sale of this property, they shouldn’t have any liability on income tax/property gain at all, they just signed on registry.
My father is fine to pay income tax / property gain on entire amount.
Please guide us with the legal process for:
1. Tax liability with my father only as he is the only person who gained with the property sale.
2. Should there be any family settlement for this?
Thanks,
Vikash Jindal
P. Venu
(Expert) 03 March 2016
As the income has accrued to your father, he is liable in respect of Income Tax.
The facts, as such, suggests a family settlement and this may be reflected in the sale deed; the deed needs to be examined.
Dr J C Vashista
(Expert) 03 March 2016
I agree with the expert advise of Mr. P Venu.
Show the family settlement deed and sale deed to a local lawyer.
However, as you stated in the query, your father is the only beneficiary, obviously, he is liable for payment of taxes.
Vikash Jindal
(Querist) 03 March 2016
Dear Sir,
As of now there is no family settlement deed exist. Hence in sale deed, nothing is mentioned about family settlement.
However if family settlement may help, is it ok to have that family settlement deed now?
Thanks,
Vikash Jindal
ABHIMANYU JHAMBA
(Expert) 03 March 2016
You may also choose to execute a gift deed from all your uncles in favour of your father. Your uncles should gift the consideration from their share in the property in favour of your father.
Your father should disclose it in his tax return and pay the taxes due. Should not be a problem then.
Abhimanyu Jhamba
CA/ Advocate
9218999999
Vikash Jindal
(Querist) 03 March 2016
Thanks all for sparing their precious time to provide worthy suggestions.
Quick question:
1. As sale deed is already has been executed by all four brothers, will Gift Deed help?
2. This is in blood relation, do we need to get Gift Deed registered? if so could you please enlighten the registry charges for Gift Deed applicable in UP.
Regards,
Vikash Jindal
Rajendra K Goyal
(Expert) 04 March 2016
Sale deed is already registered by all brothers without reference of settlement deed (hope unregistered), better treat the sale by all brothers and count tax liability accordingly.
Brothers may enter new registered settlement deed and compensate your father for above sale and mention the same in the deed.
It would be better to discuss with local consultant.
