Capital gain on sale of ancestral house property

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Ashish (Querist)
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12 November 2017 Hello Sir/ Madam,

My grandfather has purchased house in Rs. 75000 in year 1975 after he passed away, it transferred to My father and my uncle in ratio of 60:40.

Now my father want to sales the house of Rs. 2,20,00,000. Please help us to calculate long term capital gain to extent my father. Please also suggest method to avoid or minimize the taxes if re invested in other property.

Thanks in Advance.

Regards,
Ashish Gupta

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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13 November 2017 Capital gains will accrue to father and uncle in the ratio of 60:40 as both are joint owners. Capital gains will be calculated by taking cost of acquisition of Rs 75000/-, i.e. cost to the previous owner. and indexation will be done taking into account new capital gains index issued by Government for FY 17-18.

Tax pundit

Tax pundit (Expert)
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13 November 2017 60% interest in the house belongs to your father. He can gist portion of the interest in the said house to you and other family members. Subsequent to the execution of the gift deed, all of you can sell he house. Assuming that you have a brother and of the 60% share, one third is transferred by way of gift to you and your brother, in the resultant capital gain, each one of you will be liable for 20% only. (Of the total capital gains, 60% belongs to your group and 40% to your uncle).

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