Tax on Inherited Property House

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A homeowner inherited a residential flat purchased by their father in 1980. The flat was later extended in 2007, and a 50% share was transferred to the owner's wife, making them joint holders. The owner is now seeking guidance on calculating the capital gains tax if they sell the flat for 65 Lakhs, particularly regarding the property's cost basis in 2007, as they inherited it in 2020 after their parents' passing.

Amogh

Amogh (Querist)
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20 December 2021 I have received inherited residential flat of my father which was purchased at approx Rs. 18000 (Eighteen Thousand) in 1980 in mumbai, area 265 sqft. In 2007 the building got extended and so the flat extended by 110 sqft. I have transferred 50% share of my flat on my wife's name, now we are joint holders. If I sell the flat for 65 Lakhs how much tax will be calculated on sale of inherited property. Request you to kindly guide.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 December 2021 WHAT WAS THE AGREEMENT VALUE OF THE NEW FLAT IN 2007?
OR CIRCLE RATE?

Amogh

Amogh (Querist)
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20 December 2021 In 2007 my father was still the owner of flat.. I inherited in 2020 after my mother passed away.

Amogh

Amogh (Querist)
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20 December 2021 Father expired in 2015..

Amogh

Amogh (Querist)
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20 December 2021 Father purchased the flat in 1980 at approx 18K

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 December 2021 Though you inherited it in 2020, from your father via mother; but original cost of the flat as of 2007 will be required to to calculate capital gain.

Amogh

Amogh (Querist)
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28 December 2021 Where can I get the cost of my flat in 2007. I searched for ready reckoner of previous years but was unable to find. Can you please guide

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 December 2021 Either any sale document of the builder in the building during 2007 will be helpful. Or get help of any Government registered valuer.

Amogh

Amogh (Querist)
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13 February 2022 The Extension was done to existing structure of the building. No New redevelopment was done.