Disposal and distribution of fund recd thro the sale of house

sridhar (Querist) 29 November 2011 This query is : Resolved
my mother is planning to sell her house and would like to divide the proceedings with her kids and one portion she will
retain with her.what abt the tax procedure.if she gift it to her kith then who has to pay the tax.is the gift is exempted from tax

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ajay sethi (Expert) 29 November 2011
execute a gift deed . it has to be duly stamped and registered . donor has to pay tax

M.Sheik Mohammed Ali (Expert) 29 November 2011
yes, i do agree

Sanjeev (Expert) 29 November 2011
At the time of sale of the house by your mother there would be long term capital Gains that will arise due to the difference between the sale proceeds and the Indexed cost of aquisation of the property.

The tax is payable on the Capital Gain but this can be avoided if she invests the proceeds in the approved schemes under the IT Act. The tax liability would be on your mother as she is selling the property and would transfer the funds later as per her wish.

Rajeev Kumar (Expert) 29 November 2011
I agree with sethi

M/s. Y-not legal services (Expert) 30 November 2011
am also agree with ajay sir., as a citizen we should be pay tax.,

while getting benefit whats the problem to pay tax?

Sailesh Kumar Shah (Expert) 01 December 2011
Tax on Capital gain arises on sale of property would be bear by your mother.

and amount gifted to kids, no tax liability of anyone.

Devajyoti Barman (Expert) 03 December 2011
yes agreed.

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