Capital gain problem back date case.

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RAHUL KUMAR SHARMA

SENIOR AUDIT ASSISTANT

63 Points Posted on 27 April 2015

After the death of a father 2 years back, Two sons mutually agreed & signed a legal deed, and divided and took an equal share of a residential house which was purchased by their father around 40 years back. They don't have any land papers �and even dont know the amount paid at the time of purchase of land by their father.�There was no HUF created. Both sons are regular tax payers but they havent done any tax treatment or entries till now. Q1: Was any tax treatment to be done at the time of taking that property by the sons? Q2: If q1 is affirmative, �Since it is a back date case, what is to be done now? Q3: Now one of the brother want to sell the property to a person, and want consideration in white,? So how can he do that coz he hadnt done any entry etc when he took his partition?

Replies (4)

Sonakshi Mangla

Employee

238 Points Posted on 27 April 2015

rather ask this ques in expert column... difficult one..!!

RAHUL KUMAR SHARMA

SENIOR AUDIT ASSISTANT

63 Points Posted on 27 April 2015

Already asked. But seems that experts are too busy. :-)

CA HAYEDAR SHAIKH

Practice

452 Points Posted on 27 April 2015

Dear Rahul,

Go through the following.

After the death of owner of a property his heirs, such as wife, children i.e. male and female, married or unmarried may, as per respective personal law, get the Patta/Khata transferred on production of death certificate of the owner with details of property held by him to the following officers. If property is an agricultural land – Mandal Revenue Officer, if property is house or vacant land in a city/village other than agricultural land -- Offices of Corporation, Municipality, Panchayat or City survey if such office exists.

Any of the co-owners can individually or collectively release his / their right in favour of one or more collectively as the case may be and make him / them full owner. This kind of release can be with or without payment of money. This document is called Release. Release can be made not only in case of inherited property but also in case of joint purchase/acquisition.

If any of the two brothers wants to sell property, the question of capital gain will arise.