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Income tax

CA.Kanhaiyalal Gupta (Taxation Incharge) (290 Points)

24 March 2013

Dear All,

1) Mr. "A" died in year 2008

2) Mrs. "B" wife of "A" received one small room from Mr. "A" , Mrs. " B" sold same room in January 2013. of Rs. 1300000

My Question is:-

What will be property value in "Mrs. "B" balance sheet while filling the income tax return for the A.Y. 2011-2012

Thanks

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1 Replies

Mihir (Wealth Manager) (5293 Points)
Replied 25 March 2013

For IT returns for the FY 2010-11 or AY 2011-12, there shall be no change in her balance sheet. Since she has received the small room by way of a Will, it is tax free in her hands. However, in the FY 2012-13, she sold that room for which she will be liability to capital gain tax. In case she has rented out that property during the AY 2011-12, then she will have to show income from house property. But for personal reporting purpose, one can show the small room as an asset at market value. But wait for others to reply.