Hi Pankaj batra my relative is planning to sold her house and if I m am calculating right her long term capital gain is 27,00,000. As she is 80+ she don’t want to invest that amount anywhere and she also get pension of 2,00,000pa and if I am calculating right she will pay tax 2,40,000. after all calculations and consider her pension and age. Now questions are? 1. After tax if she gives me 5,00,000 is that amount also taxable for me as I am salary person and already paid tax of 20,000 or it treat as a gift. 2. As she has no other house is this possible she will spend her capital gain before tax to reconstruct my house if yes is all the bills on her name for records.
1 Answers
Income tax on long term capital gains is 20% with indexation computations.
In order to save income tax on gain amount, either this amount has to be invested into a new residential property/construct a new house or this can be invested into capital gain bonds.
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After paying tax, if she gifts you 5 lacs then it won't be taxable for you, in case you are in relation. Relation has to be one out of below 44 relations:
Brother, Brother’s Wife, Brother's wife, Daughter, Daughter’s Husband, Father, Father’s Brother, Father’s Sister’s Husband, Father's brother's wife, Father's sister, Grand Father, Grand mother, Grandson, Great Grand Father, Great grand mother, Husband, Husband’s Father, Husband’s Grand Father, Husband’s Great Grand Father, Husband's brother, Husband's brother's wife, Husband's grand mother, Husband's great grand mother, Husband's mother, Husband's sister, Mother, Mother’s Sister's Husband, Mother's brother's wife, Mother's husband, Mother's sister, Sister, Sister Husband, Son, son's wife, Wife, Wife' sister, Wife’s Father, Wife’s Grand Father, Wife’s Great Grand Father, Wife's brother, Wife's brother's wife, wife's grand mother, Wife's great grand mother, wife's mother -
If she decided to construct a house to save tax, it has to be on her name.
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