17 January 2011
I just have got a residential Property from my Aunt as a gift. I want to know three things, 1. Is there any tax on gift? 2. And suppose i sell this property will i have to pay Capital Gain Tax and if yes what is the percentage i have to pay. This Property was purchased by my Uncle in 1995 for 10 lakhs and now is worth around 50 lakhs. 3. Can i avoid this capital gain tax by investing this money somewhere else like shares or fixed deposits apart from buying another property ?
17 January 2011
1. As Aunt is spouse of brother of your parent so gift received from her is exempt. (U/s 56((2)(vii). 2. You will get indexation benefit on the cost to the previous owner and for the purpose of indexation period of holding would be counted from 1995. Sales Consideration Less Indexed Cost of Acquisition will be the amount of Capital Gain (LTCG). 3. No, You can nor purchase shares or invest in FD. You have an option to invest in NHAI and REC Bonds U/s 54EC.
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