Capital gain on sale of gifted house property

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alok mukherjee (Querist)
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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)
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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)
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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?

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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13 March 2025 Yes, he certify the rate in his report.