Property related matter
SUPRIYA KABRA
(Querist) 17 January 2012
This query is : Resolved
My father in law and brother in law jointly own a house in ahmedabad. The property was purchased by means of a loan that will be repaid back by March 2012. Now since our whole family has shifted to mumbai, we plan to purchase a new house here in the name of my husband and myself. But first we want to sell the ahmedabad property.
i wish to understand capital gain tax implications on such transaction. How much CGT will be applicable? Secondly is it possible to transfer the ahmedabad property first in our (myself and my husband's) name and then sell it?
Please guide me through the process.
Deepak Nair
(Expert) 17 January 2012
Dear Supriya,
I think a CA can guide you better in this case.
Raj Kumar Makkad
(Expert) 17 January 2012
As the house in Ahmedabad is in the name of your father in law and brother in law so its sale and further purchase in Mumbai in the name of you and your's husband shall not be case of CGT. The CGT is levied upon the same person buying the residential property within 3 years of date of sale.
It shall be better if you get transferred the house of Ahmedabad in your name and then sale it so that the desired benefit may be got obtained. gift deed or Release deed can be got applied as the case may be for this transfer.
V R SHROFF
(Expert) 18 January 2012
REPEATED WITHIN FEW HOURS::
Posted about 19 hours ago
SUPRIYA KABRA
my father in law and brother in law jointly own a house in ahmedabad. the property was purchased by means of a loan that will be repaid back by March 2012. now since our whole family has shifted to mumbai, we plan to purchase a new house here in the name of my husband and myself. but first we want to sell the ahmedabad property.
i wish to understand capital gain tax implications on such transaction. how much CGT will be applicable? secondly is it possible to transfer the ahmedabad property first in our (myself and my husband's) name and then sell it?
please guide me through the process.
Posted about 19 hours ago
Sanjeev
Lawyer
The amount of capital gain is calculated by subtracting the indexed cost of aquisation from the sale value. The amount of Capital gain can be invested in purchasing a new house so that would be not taxed.
The question here would arise that the capital gain would be incurred by your FIL and BIL and the investment in your name would not be a eligible investment to claim deduction so either you transfer the property in your name before selling or the new property would need to be in your BIL and FIL names.
Posted about 19 hours ago
SUPRIYA KABRA
Asst Manager
[ Scorecard : 33]
my brother in law is a CA. he said transfer of property in our names would not be possible and that we will have to pay capital gain tax. is it right?
Posted about 19 hours ago
A V Vishal
Advocate
NO IF THE PROPERTY COMES AS A GIFT THEN YOU ARE NOT LIABLE TO TAX.
about 19 hours ago
SUPRIYA KABRA
Asst Manager
but can my brother in law and father in law transfer the property in our names?
Posted about 19 hours ago
Sanjeev
Lawyer
first calculate the capital gain amount multiply the cost of house by 785 and divide by 463 as this will be indexed cost of aquisation. Now subtract this amount from the sale value you will get the capital gain amount that need to be invested in approved schemes to save tax.
2002-2003 447 21=4.929% 6.573%
2003-2004 463 16=3.579% 4.773%
2004-2005 480 17=3.6717% 4.896%
2005-2006 497 17=3.5416% 4.7222%
2006-2007 519 22=4.4265% 5.902%
2007-2008 551 32=6.1657% 8.221%
2008-2009 582 31=5.6213% 7.501%
2009-2010 632 50=8.591% 11.455%
2010-2011 711 79=12.36% 16.485%
2011-12 785 74=10.44% 13.8772%
Posted about 18 hours ago
Sanjeev
Lawyer
tax liability is 20 percent on the amount so calculated.
If your BIL wants to save this he need to invest this amount in some approved schemes else y
Posted about 18 hours ago
A V Vishal
Advocate
Yes they can transfer the property on your name by way of gift deed duly registered
18 hours ago
akash kapoor
VISHAL SIR IS RIGHT
Posted 2 minutes ago
V R SHROFF
Thanks Supriya, you requested me, but Sorry, TAXATION IS NOT MY SUBJECT
why repeat??
& Deepak, Her brother in law is CA. She want to trf Property on her husband's name jty with herself
Deepak Nair
(Expert) 18 January 2012
Rightly pointed out by Shroff sir.
A CA in her own house and wandering here and there for advise on taxaion.
