LTCG on Residential house property

[narendra mishra]

The 85 years old lady sold the property in november 2013 and other details are as under:

1) sale consideration 60 lac

2) Acquired before 1981

3) lady died in December 2013

4) Before she died he executed the will and nominated executor to pay the money to there son and daughter in different proportion.

My query

1) Is capital gain taxable in the hands of old lady or

2)Taxable in the hands of son/daughter.Whether they can get the benefit of exemption.

[DR.MARIAPPAN GOVINDARAJAN]

In my opinion, the capital gains falls in the hands of old lady since it has been received before her death.

AI Summary

Capital gains taxation: sale proceeds received before death are taxed in the deceased owner's hands, not the heirs. Long-term capital gain on sale of the residential house is taxable in the hands of the owner because the sale consideration was received during her lifetime; a subsequent death and testamentary nomination do not transfer the tax liability to beneficiaries.