suppose Mr A is a super senior citizen and has sold his property for 24 lakhs.
He has a brother-B,
son-S,
daughter-D and
sons wife(daughter in law of A)-DL
now can "A" give this 24 lakhs to. B, D, S, DL (4 lakhs each that is 16 lakhs)
q1.....can B, D, S, DL spend thus money in anyway they like...or they need to invest this money in property only.
q2.....is gift deed is also necessary
q3....also how to calculate capital gains...if cost of property is unknown (property bought in 1920s)
1. Any way they like....... because LTCG tax liability rests on Mr. A.
2. Single Gift deed is OK for all.
3. Evaluate value of the property as on 01.04.2001, from a Registered Valuer, that can be taken as COP as on 01.04.2001. Index the COP to the date of sale, to evaluate LTCG.
CAclubindia
