ITR requirement for non taxable capital gains

Hello,

Please assist on my query-

There is a property in Delhi which my father purchased in May 2014 for Rs. 8 lacs. Stamp duty paid additionally was Rs. 50,000.

Father expired few days back. Now either my mother or I can sell that property for Rs. 9.5 lacs (as per circle rate).

Query-
1. Will short term capital gain be Rs. 9.5 lacs - 8 lacs = Rs. 1.5 lacs ? Or will it be lessened further by Rs. 50,000(stamp duty paid in 2014) ?
2. If my mother sells it (I relinquish property), then is it compulsory for her to file ITR? Mother doesn't have any other income and no PAN card. Since the capital gain is below taxable limit , we are not keen to file ITR.
3. If we both sell it (half share myself and half my mother), then still my mother requires to file ITR ?

Thanks in advance
Asked 5 months ago in Capital Gains Tax from Delhi, Delhi
Dear Sir,

1. Yes, it will be lessened by INR 50000.

2. No it's not mandatiry for her to file ITR.

3. Same as point 2.

Please let me know if you have any questions.

Thanks and Regards
CA Abhishek Dugar
Caabhishekdugar@gmail.com
Abhishek Dugar
CA, Mumbai
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Dear Sir,

1. Section 139(1) of the income tax act read as under - 

"(1) Every person,—
(a) being a company or a firm; or
(b) being a person other than a company or a firm, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax,

shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed."

Based on above, I dont think so your mother is required to file any return.

Please note that however it is not mandatory to file return for your mother but it is highly re-commendatory to file return. Because it always helps to establish the source of income.

2. Better you take gift from your mother rather than taking loan. Gifts from relatives are exempt from tax

Thanks and Regards,
CA Abhishek Dugar
Abhishek Dugar
CA, Mumbai
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1. Your short term gain will be 1 Lakhs
2. No need to file return if the taxable income is less than the exemption limit.
3. No need if no other income to your mother apart from this. Show it under mother.
4. You can borrow the total amount or can take it as gift.
Shyam Sunder Modani
CA, Hyderabad
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Again, gift deed is not mandatory but recommendatory.

However, you need to show this gift in exempt income section.

Thanks and Regards
CA Abhishek Dugar
Caabhishekdugar@gmail.com
Abhishek Dugar
CA, Mumbai
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Yes you can take whole 9 lakhs. Better to have gift deed on RS.100 stamp paper.
Shyam Sunder Modani
CA, Hyderabad
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Hello Sir,

The Amount of CG shall be Rs.9.5 L - Rs.8 Lac.

It is not mandatory for you to file the Income Tax Returns but it is preferable if you do as the Income Tax department may send you a notice as to why have you not filed the returns.

And then you will have to show the working that as you were not liable to taxes you haven't filed the returns.

Please help us with the details in order to guide you in a proper manner. 

Trust this clarifies your query. 

Feel free to call back/ get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.
Rohit R Sharma
CA, Mumbai
719 Answers
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Hello Sir,

You can either take an interest free loan or a Gift from your Mother.

It is preferable to get a Gift Deed done.

Please help us with the details in order to guide you in a proper manner. 

Trust this clarifies your query. 

Feel free to call back/ get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.
Rohit R Sharma
CA, Mumbai
719 Answers
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