Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Ancestrol property

Ravi (Self Employed) (70 Points)

04 March 2017

Hello. I have inherited a property from my grand parents do I need to pay long term capital gain tax from the sale of that property. Also I have a brother so it will be shared between both of us but my brother will prepare a gift deed as he is not interested in his share. Again from from the gift share of my brother do I need to pay tax on that. Please advise. Thank you

Reply
Follow
Share

7 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (166946 Points)
Replied 04 March 2017

Yes. Total liability would be same, whether assessed jointly or individually. At same time exemption u/s. 54/54F/f4EC etc. can be availed.

Upgrade to CAclubindia Pro. Subscribe Now!

Ravi (Self Employed) (70 Points)
Replied 04 March 2017

Dear DhirajlalG

Thank you for your promot feedback. Highly appreciated. I have one more question sir. My dad passed away few months back & he has left behind a property. Now that property is under my dads name as XYZ(HUF). If I want to transfer it under my name how should I proceed or being the immediate legal heir I become the karta & continue it under the same name.

Thank you once again.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (166946 Points)
Replied 04 March 2017

When it is HUF property, you cannot directly transfer it in your individual name. Either the HUF is to be dissolved with consent of other coparceners to transfer the property in your favour (by way of Relinquishment deed) Or retain the property in the HUF hotchpotch itself, and just change Karta (next eldest coparcener)

Ravi (Self Employed) (70 Points)
Replied 04 March 2017

DhirajlalG

How should I change the name of karta. For example if I want to continue as HUF property, for society records just an application would do because on the share certificate my dads name is there as XYZ(HUF). Do I need to change the stamp of HUF. Does the name change on the share certificate (new karta - ABC {HUF}) or it remains under the old karta name.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (166946 Points)
Replied 04 March 2017

"............on the share certificate my dads name is there as XYZ(HUF)........" Wrong notion.

Look at it with correct notion as: " on the share certificate name is there as XYZ(HUF). whose Karta was my father, but after his demise a new Karta is to be assigned."

Consult a local CA who can guide you to change Karta of HUF and submit required papers to society.

Upgrade to CAclubindia Pro. Subscribe Now!

Ravi (Self Employed) (70 Points)
Replied 04 March 2017

DhirajlalaG

Aplogoies for using the wrong notion.

Many thanks for your support & guidance.

God bless you.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (166946 Points)
Replied 05 March 2017

Dear Ravi,

No question of any apology, this was just to clarify your understanding on the subject. I have also learned in similar fashion. As such, I thank Experts who have directly or indirectly helped me to rectify my mis/understanding on various topics. Thanks to CA Paras Bafna Ji for clarifying my HUF concept.

1 Like