Capital gain or other income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

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.?

CA Mohit Bansal

CA Mohit Bansal (Expert)
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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