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
Hello Abhishek Sir, Thanks very much for your quick response. 1. Please don't mind but what I have got to know from my contacts is the fact that if my mother doesn't disclose the sale of Rs. 9.5 lacs(and inherited purchase of Rs. 8 lacs) in her ITR for this f.y., then the whole 9.5 lacs would be treated as undisclosed income and enquiry can be initiated to her. Is this true, kindly confirm? 2. Also, from 9.5 lacs, how much I can borrow from her as interest free loan? Thanks in advance
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
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.
Thanks Sirs. Gift from my mother- Can I take whole Rs. 9 lacs as gift from my mother? Is there any requirement of any gift deed/notarised doc. to document that I have received gift from her? Or I can simply take gift without doc. ? Thanks in advance.
Yes you can take whole 9 lakhs. Better to have gift deed on RS.100 stamp paper.
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.
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.