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Save Capital Gains

23 October 2021

I'm going to sell an property in city limits. Its Stamp duty value is 1250000. I'm the owner of the property. Can I transfer it to my 4 family members and then sale it to divide the value in 4 parts and get cheque in name of 4 family members to avoid tax by taking benefits of slab rate?

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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177713 Points)
Replied 23 October 2021

The four family members should not include your wife and minors; otherwise the income will get clubbed in your hand again..

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Santosh Gaikwad (Project Financial Control) (7 Points)
Replied 23 October 2021

No you can not do so. even if you transfer property to family members without consideration, it will be treated as gift and tax is payable by family members. please remember, there is no exemption or deduction available on long term capital gain provided you don't apply the provisions of sec 54EC

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CA Aakarsh Jain (CA) (10431 Points)
Replied 23 October 2021

If it is treated as a gift then why tax is payable by family members, as gift received from relatives is exempt

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Dip Narayan (Deputy Manager) (772 Points)
Replied 26 October 2021

There is a provision in Income Tax Clubbing of Income . Pl follow the advice of Mr Dhirajlal Rambhia

sabyasachi mukherjee (27574 Points)
Replied 27 November 2021

Considering the owner of the property is the querist. In case u sell , capital gain will arise.
Divide the surplus amongst your family members excepting your wife. Then clubbing provisions will apply.