Capital Gains - Sale of my share by Release Deed - Inherited property
This query is : Resolved
09 November 2022
Dear Sir / Madam,
My father purchased a flat in 1992 for Rs. 3,25,000/-, out of his own earnings - retirement money. Stamp Duty paid approx Rs. 17,000/-. And Registration Charges paid approx Rs. 4,500/-. Means Cost of Aquisition in 1992:- Rs. 3,46,500/-.
My father executed a Will, bequeathing all his tangibles to my mother; it also says, after her demise - the remnants to be shared equally amongst myself, my 3 sisters and my pre-deceased brother's wife, @ 20% each.
My father passed away on 15-06-2019 and my mother on 06-07-2020. Property Card containing all our (inheritors') names as co-owners was issued by the local authority on 11-04-2022. But I believe this is only a formality and the ownership vests with us with effect from 06-07-2020.
I am selling my 20% share of ownership rights in the flat to my brother's wife for Rs. 15,00,000/-. Please inform what is the approximate amount of Capital Gains, Tax payable thereon and also the approximate amount I have to invest in the specified Bonds for claiming full exemption from payment of tax.
My father purchased a flat in 1992 for Rs. 3,25,000/-, out of his own earnings - retirement money. Stamp Duty paid approx Rs. 17,000/-. And Registration Charges paid approx Rs. 4,500/-. Means Cost of Aquisition in 1992:- Rs. 3,46,500/-.
My father executed a Will, bequeathing all his tangibles to my mother; it also says, after her demise - the remnants to be shared equally amongst myself, my 3 sisters and my pre-deceased brother's wife, @ 20% each.
My father passed away on 15-06-2019 and my mother on 06-07-2020. Property Card containing all our (inheritors') names as co-owners was issued by the local authority on 11-04-2022. But I believe this is only a formality and the ownership vests with us with effect from 06-07-2020.
I am selling my 20% share of ownership rights in the flat to my brother's wife for Rs. 15,00,000/-. Please inform what is the approximate amount of Capital Gains, Tax payable thereon and also the approximate amount I have to invest in the specified Bonds for claiming full exemption from payment of tax.
09 November 2022
Deduct indexed cost of 20% Market value as on 1st April 2001 from 15 lacs to arrive at capital gains.
09 November 2022
Deduct indexed cost of 20% Market value as on 1st April 2001 from 15 lacs to arrive at capital gains.
09 November 2022
Sir,
I am really grateful for your very quick response. Can't the base year be 2020? I read an article on Cleartax that the base year in case of inherited property will be the year in which the inheritance was received and not 2001. Sending the link for the same. Requesting you to please examine the matter in this context and revert with your considered opinion. (Kindly see under the heading 'Points to Ponder'.)
https://cleartax.in/s/cost-inflation-index#indexation=
I am really grateful for your very quick response. Can't the base year be 2020? I read an article on Cleartax that the base year in case of inherited property will be the year in which the inheritance was received and not 2001. Sending the link for the same. Requesting you to please examine the matter in this context and revert with your considered opinion. (Kindly see under the heading 'Points to Ponder'.)
https://cleartax.in/s/cost-inflation-index#indexation=
09 November 2022
It's the market value to considered on 1st April 2001.
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