Sir
we pay my all debt through sale of my property
then we have to fall under capital gain or not
we pay all debts through cheque
some debts are related to property and some others
please suggest
because we have pay all amount in debts ... I am not use any money of property
1. Once the capital asset is sold resulting in gains it will be charged to tax. Exemptions are available if the sale consideration is utilized for making certain investments.
2. Unless if it is utilized for the specified investments the gain will be taxed in the hands of the owner of the capital asset.
3. In your case, if the transfer results in gains it will be subject to capital gains tax. It is irrelevant in here whether the same was utilized for repaying the debt or not. Hence, capital gains arising on transfer of property will be subject to tax.
Please correct me if the above solution has an alternative view.
CAclubindia
