Capital gain tax

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karthik (Querist)
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19 January 2012 We have a Immovable property acquired by my grandfather by inheritance and that was being sold way by all the legal heirs for a sale value of 2.35 crores (having stamp paper value 1.65 crores) totally 8 legal heirs are there in this property the indexed cost of the property is almost 90lakhs now wats the way to calculate Capital gain tax all will get their respective shares individually will they have to pay tax at the time of registration or can avoid tax by depositing money in CG A/c in nationalised banks please Advice !!!!

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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19 January 2012 The sale consideration shall be divided equally among all the legal heirs.

Also, the indexed cost of acquisition shall be divided equally among all the legal heirs.

The balance amount shall be taxable in the individual hands of the leagal heirs.

If the property was a RESIDENTIAL HOUSE PROPERTY, then exemption u/s 54 can be claimed by investing the amount in another residential house property.

Alternatively, the amount can be deposited in a Capital Gain Scheme Account.But the same is to be utilised within a period of 3 years for purchase/construction of a RESIDENTIAL HOUSE PROPERTY.

If not utilized, the same will be taxable.

karthik

karthik (Querist)
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19 January 2012 Thanks Sir Exactly i have also explained same to my Family members since i am student i am taking experts view Well sir is there any chances i can get the market values of the property as on 1-4-1981 so can i get exact indexed value ?? Once again thanks for ur reply

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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19 January 2012 To get market value of property, do the following:

Contact the registrar of the area in which the property is situated.

Tell him that you need copies of sale deeds of properties sold in that particular area in April/May 1981 which are similar to your property.

Get atleast 4-5 copies.

Take the average sale price as fair market value.

karthik

karthik (Querist)
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19 January 2012 Thank you Siddhartha Sir once again

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