Capital gain and gifting

Rohit (Querist) 21 October 2012 This query is : Resolved
My grandmother has two properties. She wants to sell both of them.
By selling first property she wants to put the capital in the bank and from the capital gain she will invest in infrastructure bonds.

By selling the second property she wants to gift all the money to me.
Does she has to pay capital gain tax before gifting it to me? Can it be possible that she will gift all the money and I will pay the capital gain tax?

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A V Vishal (Expert) 22 October 2012
Not possible technically but you need to pay taxes on her behalf not yours

Guest (Expert) 22 October 2012
The sole question rests on the issue of payment of capital gains tax, whether your grand mother pays or you pay in her name (not in your own name).

Rohit (Querist) 22 October 2012
Thanks for the valuable information.

Rohit (Querist) 22 October 2012
How can i save capital gains tax from the second property?
To save capital gains tax can i invest the capital gain in the infrastructure bonds or in the property in my name?

Guest (Expert) 22 October 2012
Investment on your part and in your name would not extinguish the liability of capital gains tax of your grand mother. She would remain liable to pay the tax dues. You may, if you like send complete details through email for detailed examination and guidance at dcgroup1962@gmail.com

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