02 August 2012
Case: There are few properties belongs to joint family (A,B & C). A is releasing his right in favor of other joint family members and will get 10 lac on account of family settlement. He will gave away his all right on these properties.
properties were inherited to A,B and C on the death of their parents.
Q.1- Income tax liability on A (if any). Q.2 If there is any I.tax liability how same can be minimized?
03 August 2012
yes it is a capital gains in the hands of Mr.A as it is relinquishment or transfer of Right in the property Rs.10 lac will be the Sale Consideration and Properties cost to the previous owner the one from which property is inherited will be the Cost of Acquisition(his share)
Tax can be minimized but following points are required to clarify 1. property is residential house or plot of land
05 August 2012
Dis agree with Mr. S. Sethia, If property belongs to joint family(HUF) and transfer among members is on account of partition or distribution amongst member of joint family, this will not be regarded as transfer u/s. 47(1) as such no I Tax will attract.
CAclubindia
