Capital gain on inherrint property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2015 i have sell my house in surat city for 5000000.which is inherent form before 1981.so how much my capital gain tax and can i save capital gain to invest in capital gain bond?how much should i invest in capital gain bond to save capital gain.i am female sr.citizen

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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11 March 2015 Firstly you do not have to pay capital gain tax on entire sale consideration. For capital gain calculation indexation of cost of acquisition will be made by following formula:

Cost of acquisition/CII of year in which asset was acquired x CII of year in which asset was transferred.

Moreover in case of inherited property cost to the previous owner will be taken as the cost of acquisition for indexation purposes. as you have inherited property before 1981 you have the option of choosing either fair market value of inherited property as on 1.4.81 or actual cost of acquisition to the previous owner. Get in touch with a good tax consultant in your area and tell him all the facts he will calculate tax.

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