Long term capital gain

Question

Long term capital gain

Hello
I have question related to Long term capital gain
My father has purchased a property for a consideration in 1994 and he is a GPA holder and the GPA is registered
Now he wants to register the property via sale deed to my brother by paying the stamp duty and there is no consideration for this registration.
Since there will be guidance value mentioned in the sale deed for paying stamp duty will these attract Long term capital gain for my father.
How should we approach
Thanks in advance for your guidance

Asked 11 years ago in Taxation

Answer 1

your question is not clear. Your father must be getting benefit of long term capital gain from the property purchased in 1994. isn't it?

Your father can transfer the property to your brother via sale deed. As per the current income-tax rules, long-term capital gains on sale of a property held for three years, attracts 20 per cent tax.

However if your father gifts the property to your brother, it would be outside the capital gain tax as it is not considered as transfer under Capital Gain of IT Act, whereas since if it is a Gift of immovable property , it must be registered and required Stamp Duty is to be paid.

Shaveta Sanghi

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