Income tax

This query is : Resolved

B.Sivasankaran (Querist)
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12 October 2011 Sir/Madam,

I have the following query.

A person who is 72 years old sells his only house in Chennai. His monthly pension is Rs. 7,000/- and he has no other source of income. He is not an income tax assessee. He sells his house for a consideration of Rs.1.30 crores to a flat promoter and in addition to it receives a 2BHK flat in the same place. He has three sons and a daughter and all of them are married. What are all the best possible options available to him in order to reduce/avoid tax.

In case, if he divides the money equally and gives them to his children without paying capital gains tax, what will be the tax imapact in the hands of the receipients and in his hands.

Kindly clarify the position.

Regards,
B.Sivasankaran

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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12 October 2011 IN THIS CASE ONCE THE PROPERTY IS TR CAP GAIN WILL BE CALCULATED TAKING 1.3 CR AND COST OF CONSTRUCTION OF FLAT AS SALE VALUE AND DEDUCTING OUT OF IT THE INDEXED COST OF HOUSE
NO TAX BENEFIT IF HE DISTRIBUTES NONEY TO HIS CHILDREN

CA MANOJ GUPTA
JODHPUR
09828510543