26 May 2014
I own a house jointly with my father for the last 22 years which I would like to release to him without any consideration. If my father sells this property for 75 lakhs what will be the capital gains he will have to suffer. Cost of purchase of the house was 2 lakhs. Please confirm whether indexation benefit will be available for him from the original purchase date or from the date of release.
27 May 2014
In my opinion if it is release deed tax implication would depend on reasons for such execution and capital gain to be determined based on date of release but if it is gift deed then it can be considered from original purchase date.
27 May 2014
if your give you gift then no income will be liable. if you pay amount to your father for his part then your father liable to LTCG (LOng term capital gain) on Profit of property after indexation in year his release his share and get index benefit for that.
CAclubindia
