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90-Year-Old Seller: How to Calculate LTCG on Flats Transferred to Son/Daughter in JDA?

Mihir

Mihir Tanna  |1018 Answers  |Ask -

Tax Expert - Answered on Oct 18, 2024

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more
Venkat Question by Venkat on Oct 05, 2024Hindi
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We have purchased a land & constructed building in 1989 Now in April 2024 entered in JDA with a Builder - 50/50 - Out of 6 Flats 3 for owner 3 he will sell - approx during August 2025 he will hand over these Flats How to calculate LTCG Also if the same all 3 flats has been transfrd to his Son/Daughter , is there any LTCG applicable. The Owner is 90 years old-Live pl Thanks

Ans: In case of JDA, 1st tax liability arise for transfer of land for development and on which tax is required to be paid year in which completion certificate is issued.

After that when you transfer property, it will STCG if sold within 24 months of JDA.

Property transfer as a gift is not taxable
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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