02 August 2022
What will be the capital gain and how to invest on 2/9 th share of inherited ancestral property after fathers death in 2017 by myself, brother and my mother as legal heir where myself and my brother falls under 30 % income tax bracket and mother is dependent with pan and will have a sell value of 30 lakh. The property is close to 70 year old. How to know the cost of accustion for such a old property.
02 August 2022
1. Get circle rate of the property as on 2001, from Sub Registrar office. Take it as cost of acquisition. 2. Index it to 2022 for index cost of acquisition. Reduce it from the sell value, to arrive at LTCG. 3. The capital gain can be invested in Capital gain bonds, or any house property to get exemption under sec, 54EC or sec. 54 of IT act.
02 August 2022
Thank you sir for your prompt reply deeply appreciate that ! . Just a quick clarification. Since myself , my brother and my mother are share holder. Can we divide the selling price equally and invest or any one can invest the whole amount. If we divide the money equally how the capital gain amont is shared which we need to invest.
02 August 2022
If you divide equally, mostly suggested, then 33.33% of the CG tax liability arises on each. Each can invest said 33.33% of gain amount individually to get exemption.
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