Capital gain and gift to daughter

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 July 2016 I ll summarize the scenario

A is Dad of daughter D
A and D have PAN Cards,but have never filed returns in their life,as they do not earn more than 50000.

D is now married.

A sells the flat in which he stays for 48 Lakhs and then buys a smaller house in a remote location for 18 lakhs.
He then also decides to gift his daughter 20Lakhs and wishes to create a FD for her security.

Now since he has capital gain and also he is gifting to his daughter.

here are my queries:-

-He does not file any income tax returns until now/should he do it now?

-What is the procedure for capital gains tax/how much amount is to be paid/can it be avoided to pay capital gains tax

-Should the daughter file returns because it is a gift.
Since the gift is in form of FD.Is there any tax on interest earned?

Kaushik Joshi

Kaushik Joshi (Expert)
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18 July 2016 Dear Anonymous, Answers to your queries are as follows: 1. it is better he files his return of income for the year under consideration. 2. Sections 45, 54 & 54F are sections you'd like to refer to calculate your capital gain. 3. No need to file return of income of daughter. in case of any compliance notice in future, answer that it was gift received in marriage. The interest from FD is taxable in hands of father under clubbing provisions. How that solves your query.

Kaushik Joshi

Kaushik Joshi (Expert)
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19 July 2016 *Hope that solves your query.

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CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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19 July 2016 Father can get exemption u/s 54 on investing the gains from sale of flat into another house for which first capital gains will be calculated by applying suitable indexation to the cost of acquisition. But this will apply only if the asset sold was a long term capital asset.
FD interest will be clubbed with the father's income only if daughter was minor at the time of gift.