G Madhusudhan (Chief Consultant) (25 Points)
21 December 2010Hi everybody,
What is the Capital gain implications when a father who acquired the immovable property from his HUF as his share during partition before 1/4/1981.
Further, father will gift the property to his only son during 2003.
Son will sell the immovable property in 2005 and will adjust the proceeds towards the property purchased by him during the 2004-2005.
What is the tax implications on the above transaction and for whom ?
with regards,
GM
Sunshine
(Helping All)
(10575 Points)
Replied 21 December 2010
there is no capital gain on the partition of HUF or in case of gift as they are not transfers as per section 2(47).....at the time of sale of property capital gain will arise in the hands of son and it will be long term capital gain...as in case of gift the period of holding of previous owner is also considered in order to find whether its long term or short term gain
regards,
Sneha
krishna
(Employee @ GVK Associates)
(253 Points)
Replied 21 December 2010
Gift Tax is not prevailing as on date.
Section 56(2) (v) is not applicable in case of gift to son.
Section 47(iii) gift not regarded as transfer.
Section 49(1) (ii) transfer under gift, then cost of previous owner will be the cost for donee.
Exemption cab be availed by son.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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