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ABOUT GIFT DEED ON LTCG

Krishanu Chowdhury (153 Points)

30 July 2017

TAX TREATMENT OF LTCG ON LAND GIVEN BY OTHERS THROUGH GIFT DEED FOR AY:2017-18?

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3 Replies

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 30 July 2017

please provide your query in detail to give proper advice

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Krishanu Chowdhury (153 Points)
Replied 30 July 2017

I am the owner of a land gifted by mami the purchase value of which is RS 250000 in 2001 according to WBVB. Now the said land is sold for Rs 5400000 in 2017. Now how to calculate LTCG for AY 2018-19?

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 30 July 2017

if the house property is gifted through gift deed the first incidence of tax wud be on sale of the property. cost for this purpose would be cost to the previous owner. as the property us sold after 3 years it wud be a LTCG.
LTCG wud be sale consideration minus indexed cost of acquisition I.e. cost of acquisition *current years index divided by index of 2001. balance wud be your LTCG. you can save tax by investing in 54EC bonds upto Rs.50lacs or invest the proceeds in house property as per section 54F.
you have not mentioned the month when the land was sold. if after 31st March then taxable in A Y. 2018-19 else in current A Y 2017-18