R.Arvind (Practising Advocate) 09 August 2013

Capital gains

Hi everybody. When a self acquired property is being settled by a Mother( who had acquired it 20 years back) in favor of her two children( each getting 1/3rd share i..e., Mother as well as her 2 children) and shortly thereafter, all of them jointly sell the property, for the purposes of calculation of Capital Gains, Will the holding period of the Settllees be clubbed with the holding period of the Settlor, thereby entailing Long Term Capital Gains for all of them, keeping in view the provisions of Section 49 of Income Tax Act?

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Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 09 August 2013

With a view to removing the hardship caused to taxpayers, the Central Board of Direct Taxes, in exercise of powers conferred by clause (c) of sub-section (2) of section 119 of the Income-tax Act, 1961, hereby orders that the limitation of six months for making the investment under section 54EC of capital gains arising from the transfer of a long-term capital asset, is extended—

(i) up to 30th September, 2006, in case of persons where the long-term capital asset was transferred between 29-9-2005 and 31-12-2005 (both dates inclusive);

(ii) up to 31st December, 2006, in case of persons where the long-term capital asset was transferred between 1-1-2006 and 30-6-2006 (both dates inclusive).

Order F.No. 142/09/2006-TPL, dated 30-6-2006