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Indian Law/Capital gains - Sale deed-multiple heirs

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Question
Hi Sir,
My Uncle died without a will few years ago; he had two daughters and a son (all adults). Due to family compulsions, they had to sell the property recently. A sale deed was prepared, where all the legal family heirs (his wife,i.e., my aunt and her 3 children) signed. Ultimately, the cheque for the whole sale was made on my aunt's name and subsequently deposited in her account.

From Capital gains perspective, I came to know through an acquaintance that all four - aunt and her three children have to produce capital gains (assuming equal share on the proceeds) irrespective of whether their banks have been credited with equal share or not. Is that true? Why would the kids need to submit capital gains, when they have not received the benefit (In terms of the deposit amount)...

can you please clarify this?

Answer
Capital Gains Tax has to be paid by each of the joint-owners proportionately, whose names were mentioned in the Sale-Deed.The tax is to be deposited before the due  date of filing the IT Return.However, full exemption could be got from depositing any tax by investing in any of the two specified securities vide section 54EC of the Income Tax  Act.These bonds are issued only by the National Highways Authority of India and Rural Electrification Corporation Ltd.You are to hold these bonds for atleast three years and you are to invest whole or part of the capital gains in these bonds within a period of six months after the date of such transfer.If you invest only part of these gains say out of Rs. 30 lacs you invest only Rs., 10 lacs,then you will have to pay tax on the remaing Rs. 20 lacs.For further details please consult an IT Expert.  

Indian Law

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Arun Kumar Maitra

Expertise

Contract Law,Companies Act,Sale of Goods Act,Partnership Act,Negotiable Instument Acts,Constitution of India,Arbitration Act,Consumer Protection Act,Maternity Act,Payment of Gratuity Act,Payment of Bonus Act,Shops & Establishment Act etc.The answer to the grievance of the particular online query depends on the facts of the particular case and law applicable to it.However,my comments relating to the various queries raised through the "All Experts" should not be treated as legal advices and should not at all be relied upon.I do not accept any responsibility for them.They will only give you some ideas about the probable merits of your cases.Ultimate actions/decisions in the matter may please be taken in consultation with the Legal Experts in the relevant fields.My purpose of giving the comments is to increase my own knowledge on the subjects and share it with others.It is purely of academic interest to me. I strongly feel the more knowledge we share,the more we shall be able to learn because there is neither any age nor any end to learning.

Experience

I have experience of dealing with matters relating to holdings of board/general meetings,maintenance of statutory registers,filing of necessary returns with the RoC,obtaining licenses for import,replies to Parliament Questions,dealing with the Parliamentary Committees,appearing before various courts to defend my employers,filing affidavits/counter -affidavits,preparing written statements/re-joinder,giving advice to management on complicated legal issues,preparation,drafting and vetting of contracts etc. I have more than 35 years of experiences to deal with the Company Law and Other Commercial Laws of leading Organisations in the country both in Public as well as Private Sectors.

Organizations
Member,Inst. of Chartered Accountants of India Member,Inst. of Company Secretaries of India; Member,Bar Council of India Member,All India Management Association Member,Delhi Management Association Ex. Vice-Chairman,Durgapore Chapter of the I.C.A.I. Expert ,CA Club India Expert ,Lawyers Club India Expert,AllExperts Ex. Faculty ,I.C.S.I as well as I.C.W.A of India Retd. Co. Secy. & G.M.(Law)/NFL(A Mini-Ratna A Schedule Central P.S.U.),New Delhi Ex.V.P.(Secretarial Dept.),Jaiprakash Associates Ltd. Ex. Co. Secy.,MAMC(A Govt. of India Enterprise),Durgapore

Publications
Nil.

Education/Credentials
M.Com;LL.B;A.C.A;A.C.S.

Awards and Honors
Obtained ''A'' Grade Certificate in the Parliamentary Procedure from the Secy. General of Parliament in 1994-95.It was in connection with a training course conducted by the BPE for PSU Executives.

Past/Present Clients
I am presently working as a Company Secretary in Old World Hospitality Pvt. Ltd.located in Delhi.It is engaged in Hospitality Industry.It has Units in India and abroad.It has been given the responsibility to look after operation & Management of ''India Habetat Centre'' located at Lodhi Road,New Delhi.

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