Amit (Proprietor) 26 July 2014

Help on ltcg

Hi members,

I have a query regarding the inherited property to Mr. X (through registered will) who sold it for 1.5 cr and entered into family settlement through registered family settlement deed. The entire proceed is distributed by Mr. X to himself and his both the sons in the ratio of 1/3 each.

All of them then purchase the independent flats amounting to rs. 50 lacs, 50 lacs and 40 lacs.

Now whether LTCG is chargable in the hands of Mr. X only or all of three can claim the benefit of their investments through LTCG receipt.

Please suggest

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2 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 29 July 2014

The taxability of long-term capital gain (LTCG) would depend on whether at the time of sale of shares, the securities transaction tax (STT) has been paid or not.
the LTCG could be claimed as exempt from tax by investing in prescribed investment avenues—residential apartment or specified bonds— subject to the fulfilment of conditions specified under the domestic tax law.

ALOK CHATTERJEE (DGM) 29 August 2014

I had made a LIC JEEVAN SURAKSHA policy in Oct 2001 with an annual premium of Rs. 9931.00 which was to be paid upto Oct 2013. Maturity was in Nov 2014. However I surrendered the policy in Aug 2014 and got Rs. 231200.00 as the redeemed amount.

Please let me know how much amount is taxable. Also please let me know whether I should fill the IT return against "OTHER INCOME". I fall in the range of 30% tax deduction. Whether 30% tax will be deducted from this taxable income, or there will be some discount.