Capital Gain Tax Applicability

[Ethirajan Parthasarathy]

A is owner of large piece of land which he bequeathed to son X. But son Y manipulated the document and got it sold to buyer 1

Son X moved the matter in HC and the court has confirmed X is real owner. Now buyer 1 wants to sell the property to buyer 2 and son X is joining the sale deed as consenting party. Out of the sale consideration a portion is given to Son X. My understanding is the consideration received by son X is liable to LTCG tax since the land is very old Can you confirm on this. The other related question is he is only receiving part of the consideration. How to avoid application of sec 78 of IT Act 2025.

I also request you to provide me a clause to be included in the sale deed reg consideration paid son X. You may also note that the HC has not declared the earlier transaction as null and void but at the same time confirmed that son X is the real successor

AI Summary

Capital gains taxation of inherited land sale proceeds requires assessment where the rightful heir receives partial consideration.
Capital-gains tax treatment is queried where land bequeathed to son X was sold after alleged manipulation of title documents. Although title was confirmed in X's favour, the earlier sale to buyer 1 was not declared null and void. Buyer 1 proposes a resale to buyer 2, with X joining as a consenting party and receiving part of the consideration. The issues concern long-term capital gains, partial consideration, application of section 78, and recording payment to X in the sale deed.