17 January 2011
Mr. A purchase house property in the year 1979 and transfer the same in the name of his elder son Mr X in the year 1991. Mr A has three son X, Y, & Z. Now the propery will be sold and sale proceed will be distributed equally to three son X Y Z.
How the tax will be effected and what tax planning should be done
17 January 2011
Since the property is in the name of son. Any profit/loss arising from the sale of property will be taxed under the head Capital Gain in the hands of X Only.
After receiving the sale proceeds by x, X can gift the money to his brother Y & Z
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