Capital gains

Others 915 views 2 replies

Ramu sold gold ornaments on 16-7-2011 for a sum of Rs. 10 lakhs. This gold was purchased in 1978 for Rs. 60000 by his mother. The FMV of gold on 1-4-1981 was RS. 1 Lakh. His father gifted it to him on15-7-2011. He spent Rs. 2 lakhs till 31-7-2011 ( the due date of filing of return) on construction of a house propery and deposited RS 500000 on 31-7-2011 under capital gains scheme and spent a sum of Rs. 400000 for construction of the house property till the stipulated time. What will be the Capital Gains chargeable to tax on this transaction for various relevant Assessment  year?

Replies (2)

Hi,

In case the Mother gifted the Jewellery to the father & the father in turn gifted the Jewellery to the son, the holding period for the son will begin from the date of holding to the previous owner. Hence first the date in which the father acquired the Jewellery is to be seen. It will determine if it is a Long term Capital asset or short term. Lets assume it is a Long term Asset.

Even though the Holdinbg period begins from the date of acquisition to the previous owner, the benifit of indexation is available only from when the asset is transferred to the sons name.

Please see attached Excel Sheet for Computation. Please verify my calculation from a third person.

Regards

Hello

X bought a piece of land, paid the consideration and got a power of attorney signed in his favour but did not register in his favour in order to save on stamp duty. After three years he enters into a joint development agreement with a builder wherein in the Joint development agreement he figures as a confirming party only since the land is not transferred into his name. The original owner(Y) of the land is the Seller as per the agreement and also as per the Joint development agreement the possession of the land in question always remained with the original seller Y and that X will relinquish all his rights in the property for a consideration which would be in the form of flats that would be constructed by the Builder in due course.

My question is that if Long term capital gains is payable then what will be considered as the Sale consideration. Can it be the Government guideline value of the land in question.

Thanx

 

 


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