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Sale of land

28 December 2019

if a person gift a land to his sister and after a week sister sells the land, what will be the effect on tax? is it capital gain or other income?
please suggest.

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6 Replies

Kapadia Pravin (17264 Points)
Replied 28 December 2019

It will be a capital gain in the hands of your sister.

The date of acquisition of land will be deemed to be date on which you acquired land.

It will be LTCG if it is acquired by you before three years or more

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veeresh hiremath (10 Points)
Replied 28 December 2019

Whether the gift is revocable or irrevocable?

Kapadia Pravin (17264 Points)
Replied 29 December 2019

Mr Veeresh, Gift is always irrevocable dear

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Harshit Srivastava (10 Points)
Replied 29 December 2019

Thank you so much Mr. Pravin. I was in doubt about the acquisition date.

Thanks

Shivam RC (Student) (23683 Points)
Replied 29 December 2019

It's a Capital Gain and will be taxable in the hands of your Sister. The indexation benefit ( if LTCG ) will be calculated from the date when you acquired your Property.

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CMA M.Keerthi chandra (C.A FINAL STUDENT AND QUALIFIED C.M.A) (561 Points)
Replied 30 December 2019

In case of acquisition of Capital Asset by the way of interalia Gift as under 49(1), period of holding shall include the period of holding of previous owner also.