Guidance To reduce the Capital gain Tax if possible
Querist :
Anonymous
(Querist) 11 March 2011
This query is : Resolved
Learned Panelists,
I inherited, along with my mother, brothers and sisters, my father’s property.
I am thinking of selling my share of this property.
I think my family members (wife and children) also have their right on my share of this inherited property.
Now my question are:
(1) If I sell this property during my life, Will my wife and children have their lien on the sale proceeds of this property?
(2) Can I do whatever I wish about the sale proceeds of the property?
(3) Or If I purchase other property from the sale proceeds of the property inherited (my father’s) by me, will my wife and children have their right on this newly purchased property?
(4) In case reply for query no (1) above is yes, Can I give them their due share right now? While selling the inherited property and obtaining sale proceeds directly in their individual name along with my share?.. I am asking this question just to minimize the capital gain tax liability or even part of this sale proceeds can be got exempted up to tax free limit (Rs.1.60 lakh for children and Rs.1.90 lakh for wife as their present annual income is negligible (more or less zero)
(5) If this could be splited in more numbers(self, wife, and children) right now, than only in one name (mine), Capital Gain Tax slab could possibly be brought down in the lower slab, if there are different tax slabs for capital gain. I know that CG is taxable @10% for non indexed gain and @20% rate if the benefit of indexation is taken.
I request the learned panelist to give their opinion at the earliest
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soumitra basu
(Expert) 14 March 2011
1. No.
2. Yes
3. No till your life time.
4. Not Applicable. You can not minimise your capital gain tax by parting with the sale proceeds.
5. If it is a long term capital gain the rate is 20%. You can save the tax either by investing in residential house property or in specified bond.
