Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2012 One property purchased in 1992 by father having three sons and after his death it was sold by one of the coparcener in the year 12-13. Other coparcener has given the religwishment deed in the year 11-12.Whether the capital will be long term or short term.

Pankaj Gupta

Pankaj Gupta (Expert)
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11 October 2012 In the year 11-12, long term capital gain will arise in the hands of other 2 co-parceners. Because surrender of share in a property is covered under the defination of transfer and thus liable to capital gain.In the year 12-13, long term capital gain will arise in the hands of the remaining person. Cost of acquisition will be that of 1992. Also the payment to other two brothers in 2011, will be allowed as cost of improvement.