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Audry Fernandes (nil)     24 June 2011

Agreement for property transfer

We plan to avail of Capital gains tax on an ancestral property transfer.

Since the property is already sold we will only be able to get a pittance of the actual value. We hae been told by some CA friend that IT will demand tax on the ready reckoner value and not on the actual we may receive for relinquishment of rights. Can the IT do this? If so, I do not want to go ahead with any such negotiations. The tax will work out to more than the amount I receive and could even make me a pauper!

Can this rate of taxation be possible?



Learning

 1 Replies

Amit Soni (Proprietor)     24 June 2011

Dear Audry,

 

As per the IT act & rules there is a maximum rate of IT is 30% + Surcharge(on income of Rs. 1 crore & abvove) + Edu Cess.  So thi cant be happen in any situation that tax is greater than the total earnings of a person. And if you need more clearity please mail me the details of transaction & property. I will able to answer you more clearly only after analysis of the facts & figures of your case. My email id is- csamit@live.com.

 

Regards

Amit Soni


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