07 April 2015
If land is sold by say X, but proceeds from such sale of land is distrbuted between X and Y (where Y was not the owner of land) but was relative as per definition of IT Act. X didnt pay any capital gain tax.
Can Y pay capital gain tax on the portion that he received? Since long term capital gain tax attract 20% plus indexation & cost benefit is available. Otherwise said income will be taxed in other sources at highest tax bracket rate.
Since X didnt pay any CG tax...is there any problem if i claim such income exempt being gift received from a relative.?
10 April 2015
Here X needs to pay the income tax on ENTIRE capital gain and the amount received by Y from X would be exempt from tax as gifts from relative is exempt
CAclubindia
