Gift and immediate sale of capital asset

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 May 2013 Mother is owner of a bunglow.Has two sons. She gifts each son 1/3rd of her bunglow. Now all are 1/3 owner of the property. Immediately the said bunglow is given for development and one son takes his share of money and invests in a house property and balance two owners are getting some money and one flat of 2000 sq ft each. Cost of construction Rs. 1200/- per sq feet.

Question:- whether the first son can claim exemption u/s 54.

Question:- how is the liability to be calculated in respect of other co-owners

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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01 July 2013 In case of gifted property the value to the donor is to be taken as the value to the donee and the year in which donor acquired the property is to be treated as the date of ownership by the donee. Since one son opted to own another house at a different place, yes he can get the benefit u/s 54