27 October 2009
"One Big land with a small Building." The assets is long term capital assets
The asseese wants to sale it. One Way - 1. The asseese sale the land & give the proceeds to two successors 2nd way - 1. The asseese gift the land to two succeesos & the receipient should sale it
28 October 2009
The second option is always advisable. The sucessors can take the benifits of Sec.54/54F/54EC to the tune of Rs.50lacs each. This suggestion is with the presumption that he is willing to reinvest - no in his name but in the names of his two sucessors. The only drawback is that the sucessors will not get the benifit of indexation, which may not carry substantial amount of deduction since the land is very old capital asset.CA Kiran KAnani 9822049321
14 November 2009
What will the cost price in the hand of successors, if second option is excercised. If the cost price of the donor shall be considered and benefit of indexation is not possible then tax liabiltiy shall be very high.
CAclubindia
