When selling inherited property, capital gains tax may apply. The gain is calculated based on the property's value on 1st April 2001, indexed for inflation, minus the sale price. You might be able to claim exemptions, such as Section 54, if you reinvest in a new property. However, exemptions can typically only be claimed once the new property is registered and any sale proceeds are available for reinvestment.
26 August 2023
I have sold/handover rights of our old inherited flat to developer to develop residential project on it on said land and in return I am getting the 2 bhk flat. Present value approx 67L. Now I need to understand capital gain implication on the same. Whether any capital gain i need to pay and what are exemption available.
27 August 2023
Market value of the land as on 1 st April 2001 with updated indexed cost less from 67 lacs is the capital gains. Claim section 54 exemption on the new flat.
27 August 2023
Sir, thanks for reply. new flat registration not yet done than how can we claim such exemption and since no amount received so cant invest amount in capital gain account.