My friend decide to sale his own house as well as he will coming a conclusion to gift to all the amount to his daughters which is received from the house buyer. now his question is, which portion will raise/arrive income tax? selling portion (or) gifted portion? are both ? please clear.
1 Replies
Mihir
(Wealth Manager)
(5293 Points)
Replied 28 August 2013
Sale of property will attract capital gains. If he sells the flat, he will have to pay long term capital gain provided he held the flat for more than 3 years.
After selling the flat, he can either invest in infra bonds within 6 months or invest in another property within 2 years. This will minimize or eliminate long term capital gains.
If this is not done, he will be paying long term capital gains and has to show it in his ITR.
The other option is to purchase a flat keeping the daughter as co-owner.
Recent Topics
- Avoiding tax audit in case of intraday equity loss
- Form 3CEAB
- Form 3CEAA and Form 3CEAB
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
Related Threads
CAclubindia
