Capital Gains

640 views 3 replies

A women had died during the year 2007. Her husband has died long before. They have no children. She has left behind some fixed deposits and a residential flat. Her brothers and sisters after obtaining a court order disposed off her flat. The consideration and fixed deposits amounts were shared among the brothers and sisters. Each brother / sister got Rs.3.80 lacs during the financial year 2008-09.

All the brothers and sisters who got the money are senior citizens and hence can claim basic exemption upto Rs.2.25 lacs (for asst year 2009-10). I believe any income / amount received by them over and above 2.25 lacs is taxable

Forum members kindly advise whether the amount received by the relatives will be treated as normal income or under capital gains. If treated as capital gains whether the same is eligible for any indexation.

What is the rate of tax under capital gains and how to work out the same.

with regards

Muralidharan

Replies (3)

Here after the death, the capital asset is sold by executor right?So the capital gains tax should be paid by the executor and he should file return as a representative assessee of the deseased assessee. Amount recieveed by relatives from such after tax capital gains will not be taxed for relatives because it is a capital reciepts. The relatives need not include such amounts in their returns.

 Dear Professionals,

I am just a CA final student aspiring for tax practice. Although I m taking my best efforts to give correct solutions, I wanna make sure i dont give wrong advice.Please correct me if I have given wrong solutions. Thanks

The legal heir of the women should have should tax on her behalf after her death and then they should have distributed the balance amount. I think in the courts order taxation part must have been covered.

Balance amount received of brother & sisters is not taxable at all.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
29 June 2026
ACCOUNTANT

SANDEEP AASHISH & CO

Araria

B.Com

View Details
Company
29 June 2026
Accountant (Finance & Compliance)

TRIEYEZ

Kolkata

CA

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details
Company
24 June 2026
Chartered Accountant - GST & Direct Tax

APL

Mumbai

CA

View Details
Company
19 June 2026
Accounts Executive

Getfive Advisors Pvt. Ltd.

Ahmedabad

CA Inter

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details