Short term capital gain

This query is : Resolved

JAYESHKUMAR J BHATT (Querist)
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27 July 2012 I have purchased un partitioned property with land from my brother (he received this property by will in 2004) in octo-2010 for Rs. 4.95 Lacs (one half share)...The we both made Five plots on this land and sold one of the plot at Rs. 12.00 lacs... in sept. 2011.
Please advice whether I am liable to pay short term capital gain or not ? Should we two brothers form HUF and treat this as HUF property and pay for Long term capital gain ?

Amol S Joglekar

Amol S Joglekar (Expert)
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27 July 2012 Treating it as HUF is bit difficult. It needs to pass through 2 generations. But you can very well show it as business transaction as you have done the plotting.