CAPITAL GAINS
A Residential House Property in Mumbai was acquired by three brothers in 1970 (Mr. HP Shah, KK Shah, BK Shah) . Fair market value of this house on 01.04.1981 was30,00,000/-.
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HP Shah (Unit 1) |
KK Shah (Unit 2) |
BK Shah (Unit 3) |
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Gifted to son Subodh Shah in December 2009 after buying in 1970. |
Bought in 1970 &Expired in 1986 |
Bought in 1970 &Expired in 2005. |
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Transferred to wife in 2005 |
Transferred to wife in 2007 |
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(will this be long term?) |
Gifted to Subodh Shah in November 2007. |
Sold to Mr. Subodh Shah in October 2010 for75,00,000/-. |
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(will this be long term?) |
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Mr. Subodh Shah is the sole owner of the property now. If this property is sold for6,00,00,000, what will be the effect of capital gains tax in his hands? What are the options available for reinvestment to avail exemptions u/s 54 or 54EC?
CAclubindia
