Best way to save tax on estate of deceased
YASHPAL RAWAT
(Querist) 15 February 2013
This query is : Resolved
Kindly suggest Best way to save tax on capital gain on estate of deceased in following cases:-
If estate of deceased is sold and tax is paid on capital gain after taking benefit of cost of index and income tax return is filed in name of deceased.
Or
First estate of deceased is distributed among the legal heirs and each legal heir can sale the property and pay the tax on capital gain after taking benefit of cost of index according to their exemption limit.
ajay sethi
(Expert) 16 February 2013
raise query in CA Club india
Anirudh
(Expert) 16 February 2013
Dear Mr. Yashpal,
I do not know as to what made you to ask this question.
Assume that the market value of the property is Rs. 1 crore today.
Can you please give your calculations showing:
(i) The capital gain in case the property is sold before distribution to heirs;
(ii) The capital gain in the hands of individuals if the property is first distributed and then sold by the heirs.
Raj Kumar Makkad
(Expert) 16 February 2013
In the given matter, if the property is divided first among the legal heirs of the deceased and then every independent share is sold by those legal heirs then definitely it shall save major capital tax implications.
YASHPAL RAWAT
(Querist) 17 February 2013
Thanks Markkad Sir,
The quarry was very simple and having understood by you, the reply is positive & practical and I am also agrees with this.
C. P. CHUGH
(Expert) 17 February 2013
A return of deceased can be filed by his/her legal heir for the period starting from 1st April till the date of death. Any income arising out of sale of estate of the deceased by legal heirs after his/her death shall be subjected to tax in the hands of such receipients, Hence No matter the estate is sold as a single unit or multiple units after distribution to legal heirs, the tax shall be same. Sale of Single unit would be on the basis of co-owners, each owner entitled to indexation and basic exemptions. The same should be in case of sale in multiple units after distribution.
Anirudh
(Expert) 17 February 2013
I do not know what Mr. Yashpal Rawat is going to say to the answer provided by Mr. C.P.Chugh.
Mr. Yashpal should remember that any answer (though may be palatable, positive and favourable to the querist) but which is not supported by legal support is no answer at all.
Therefore, if the querist wishes to have a proper legally sustainable answer, he should ask the expert the legal basis on which he has replied.
The job of the expert here is to provide a legally sustainable answer, not to please the querist by giving palatable answer! That would be a total DISSERVICE.
C. P. CHUGH
(Expert) 18 February 2013
Hi Anirudh, It was not my reply which was commented upon by Mr Yash Pal Rawat. Actually I posted my reply lateron to explain the correct position of Law.
Thanks
C. P. CHUGH
(Expert) 18 February 2013
Sorry Anirudh, I misintepreted your comments and Posted.
Thanks and regards
Anirudh
(Expert) 19 February 2013
Mr. Makkad,
Pl. see Mr. Chugh's answer which is contrary to yours.
Can you please indicate the legal basis for your answer.
Anirudh
(Expert) 20 February 2013
Dear Mr. Makkad,
Can you please review your reply to the query with reference to the answer of Mr. C.P.Chugh and clarify as to what was the legal basis for your answer.
Anirudh
(Expert) 21 February 2013
Dear Mr. Makkad,
I find you are very much on line and answering other queries but not this one. Why?
Raj Kumar Makkad
(Expert) 21 February 2013
Thanks Mr. Anirudh for remembering me for this purpose.
I still stick to my early reply because if the unit is sold as one unit then the tax is to be paid by the one seller/owner of the house and the standard deductions etc. shall be available to only that person whereas if the house is divided in various units and every person/owner of his separate unit sells his own unit at different times as per his whims and wishes then he shall avail the deductions accordingly and tax only up to his unit shall be clamped upon him.
This was in total my advice and if you don't think it up to mark because this do not suit you then you are also free to air your own opinion.
After all I think myself as a learner and I shall try to learn till my life not like some so-called experts who do indulged in defaming and challenging the qualification of their colloquies.
I do know the names of some experts, who send personal message to such experts whose rely they find not legal instead of openly challenging them in the forum. Anyway, my point was accordingly as replied. If that is not legal, please mend it in sober language in the best interest of querist.
