My grandma does not have any income from any sources. so she didnt file her IT return. but she have one flat which she planning to sell resulting in LTCG. So does she require to file IT Return and does she require to pay LTCG?
27 October 2012
I assume that your grandma is a senior citizen and not super senior citizen (i.e. age of than 60 years or more but less than 80 years)
She would get a basic deduction of Rs. 2.5/- lakhs.
If the gain is more than 2.5/- lakhs than you can go for 5 year bank FD with schedule bank maximum upto 1 lakh which is allowable as deduction u/s 80C of the Act.
Long Term Cap gain is taxable at 20% on the profit amount.
If against selling the house she plans to purchase a new residential house in her name only the again the cost of new house is allowable as deduction u/s 54 of the Act.
29 October 2012
Thnak you, We are planning to buy new residential house but in my name. then??? it is possible to first she will gift it to me and then i would sell this old house so it can be allowable as deduction u/s 54 of the act to me by purchasing new house??
CAclubindia
