Capital gain on sale of gifted house property

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This discussion clarifies capital gains tax implications when a gifted house is sold in India. It explains how to calculate the tax based on the original purchase price, the value at the time of the gift, and the final sale price. The advice also touches upon using circle rates or an income tax valuer's report to determine the property's value for tax purposes.

alok mukherjee

alok mukherjee (Querist)

12 March 2025 Mr X purchased a residential house property at Rs 100000 in 1980. Mr X has two sons A and B. Mr X died in 2012 and on his demise, his Son B gifted his 50℅ share to his brother A in 2013. In 2013 the total value of the property as per gift deed was Rs 2400000. So A actually got Rs 1200000 worth of gift mentioned in gift deed. A sold the house at Rs 5000000 to a third party Z in January 2025. What is the capital gain tax Mr A will be paying as per Indian Income Tax Law

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

13 March 2025 You need yo get the circle rate of the property as on 01.04.2001, from Sub-registrar's office. Assuming it to be 'V'. the indexed cost of the property as on Jan 2025 would be 363V. So long term capital gain would be (50L- 363V). There would be no capital gain if V = or > 1,37,750.

alok mukherjee

alok mukherjee (Querist)

13 March 2025 Thank you Sir. But it is difficult to get the circle rate from the Subregistrar's office. Instead if I get an income tax valuer's report will that suffice the purpose?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

13 March 2025 Yes, he certify the rate in his report.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

04 October 2025 Good luck...

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