father gifted his 22 years old property (valued 60 lacs) to his son, and son sale the said property within the period of 6 months to other person and now the son is liable to pay short term capital gain or long term capital gain? pls tell me the percentage of capital gain - please help me
10 Replies
CA Shiv
(Business Controller)
(2987 Points)
Replied 20 October 2010
LTCG.
take the sale consideration.
and 100 as CII for calculating cost of purchase.
Bhavin Bhadra
(Job)
(174 Points)
Replied 20 October 2010
Long term capital gain as property is 22 years old.
It will be taxed in the hands of son.
Sale consideration net of inflation cost of property will be long term capital gain.
20% Flat rate of tax will be applicable.
Piyush Sanghi
(CA)
(172 Points)
Replied 21 October 2010
Where the Capital Asset is received by the way of GIFT or under WILL then in that case for the transfree :
1. COA shall be the Cost to previous Owner
2. Period of Holding -- It shall also include the period during which it was held by previous owner
Here Period of Holding shall be 22 Years 6 Months ---> LTCG Taxable @ Flat rate of 20%
Taxable LTCG = Full Value of Sale Consideration - Indexed COA
[Indexed COA = COA* Index of the Year in which asset is sold / Index of the Year in which Asset was acquired by the Assessee.(Indexed COA shall be equal to COA if the asset is acquired and sold during the same Previous Year)
There are several Case Laws on this Indexation
(Refer to Puspa Sofat and Kamal Mishra Case Laws..)
Santhosh Poojary
(SIEMPRE AHÍ PARA TI)
(15607 Points)
Replied 21 October 2010
| Originally posted by : Bhavin Bhadra | ||
 |
Long term capital gain as property is 22 years old. It will be taxed in the hands of son. Sale consideration net of inflation cost of property will be long term capital gain. 20% Flat rate of tax will be applicable. |
 |
THank You Dear
CA Himanshu Bansal
(Risk Manager)
(2345 Points)
Replied 24 October 2010
| Originally posted by : Piyush | ||
|
|
Where the Capital Asset is received by the way of GIFT or under WILL then in that case for the transfree : 1. COA shall be the Cost to previous Owner 2. Period of Holding -- It shall also include the period during which it was held by previous owner Here Period of Holding shall be 22 Years 6 Months ---> LTCG Taxable @ Flat rate of 20% Taxable LTCG = Full Value of Sale Consideration - Indexed COA [Indexed COA = COA* Index of the Year in which asset is sold / Index of the Year in which Asset was acquired by the Assessee.(Indexed COA shall be equal to COA if the asset is acquired and sold during the same Previous Year) There are several Case Laws on this Indexation (Refer to Puspa Sofat and Kamal Mishra Case Laws..) |
|
Agreed . Good explanation by Piyush.
sandeep
(article)
(31 Points)
Replied 25 October 2010
yes it will be taxed as LTGC in your hands
cost of acquisition should be 60 lacs as it is purchased after 1.4.1981 as you cannot avail the option of market value or cost of purchase, whichever is higher
the period of holding should be included the period for which it is held by the father(i.e. 22yrs or 6 mths)
60lacs * cii of the previous in which property transfer / cii of the previous yr on which it is first held
dinesh
(B.com,CS student)
(169 Points)
Replied 25 October 2010
Long tem Capital gain.Cost of previous owner will be indexed and taken as cost of property.
CA priyesh jain
(NA)
(60 Points)
Replied 26 October 2010
it wud b LTCG and coa wud b 60lacs,, bt no indexation benefit wud be available,, bcos going by d words in the act, that is ,,"cii of d year in which d asset is first held by the assesse",, dis thing can b drawn,,,,,
period of holding only shall be reckoned as per sec 49(1) and not indexation benefit,,,,
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