There is a house property which is gifted by a mother to her daughter & daughter further sold the property to another person within 3 mts of transfer (CG 30 lakhs) . What is the tax treatment in the hands of mother & daughter ? And in any way tax can be saved or reduced to low amount?
2 Replies
CA Abhirup Kar
(CA)
(92 Points)
Replied 16 January 2012
On transfer of immovable property in form of gift,Sec 56(2)(vii) will attract. Further this sec doesnot apply in case of girt to a relative..
In the given case, mother has gifted a HP to her daughter. Since mother comes under the defination of relatives, no cap gain or any othr gain wil arise in such case.
Further, daughter had sold the HP, in such case, cap gain will be taxable in the hand of daughter.
Assuming its a long term cap gain., the assessee can use Sec 54, to avoid the tax liability.
disha kumar
(article)
(26 Points)
Replied 16 January 2012
Hi abhirup n how can we assuming it to be LTCG becoz even if it is gift but transfer is taken place. Then daughter has a hp for 3 months only which is covered in STCG.
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