Its urgent pls reply fast...........

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2011 capital gains:-
case law:-
A senior citizen is having a flat.its fair market value is 71 lakhs. but he sold it for 55 lakhs to avoid himself from paying tax. he didn't paid any tax.55 lakhs were deposited in bank. he died. as per will his son received 55 lakhs. is he liable to pay tax on earlier transaction done by his dad? if yes then how much..& If no then why? provide correct solution of a problem..

CA Amit Joshi

CA Amit Joshi (Expert)
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29 September 2011 If assessee died than tax amount will have to paide by there legal repersantative if they have property on his behalf.
For the tax amount you have to deduct Purcased cost after indextation.
The department can levi penalty for not payment of tax

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2011 property is not there..only money is there..than what should be done....reply with reference to sections..

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CA Amit Joshi

CA Amit Joshi (Expert)
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29 September 2011 in this case property includes money also.
If you convert the money in any other form than also liable to pay tax...

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2011 sir can you give us any section so that we can refer to it...

CA Shiv

CA Shiv (Expert)
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29 September 2011 Forget it... normally the heir has to pay tax when the property of ancestral is sold by him. But in your case the property was sold before.

So forget it.. Dont do anything....