| Question And Answer | |
|---|---|
| Subject: | Capital gain tax on family settlement. |
| Category: | Income-Tax |
| Querist: | SANJAY GUPTA |
| Answered by: | Law Intern |
| Tags: | Capital Gains, relinquishment |
| Date: | May 28, 2026 |
We are three brothers and inherited a house and 200gms gold jewellery from our father who died intestate.
We have registered the house in PUDA in the name of the three brothers equally.
Now one of the brothers wants to transfer the share to other two for money, who is NRI.
Please give your valuable opinion as to whether this is transfer liable for capital gain tax, as one brother is relinquishing his right in favour of other FOR CONSIDERATION.
THANKS
Yes. A relinquishment for consideration is a transfer of a capital asset and will attract capital gains. The cost paid by the father and his period of holding will be deemed to be the cost and holding period of the brothers.
Disclaimer: This article is only for general information and is not intended to provide legal advice. Readers desiring legal advice should consult with an experienced professional to understand the current law and how it may apply to the facts of their case. Neither the author nor itatonline.org and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this article nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of itatonline.org