Tax on longterm capital gain

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Arun Babaji Gajmal (Querist)
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08 September 2015 Sir,
my father purchase flat in 2002 with name of my father & mother and sale agreement register in 2013 my father expire (without will) in 2015 we register sale deed with my mother,2sister,2brother now we want to sale the flat but bank give sales consideration amount in equal weather we all have to pay tax on capital gain? how keep that money or have to open capital gain account of all?

Amol S Joglekar

Amol S Joglekar (Expert)
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08 September 2015 You need to compute the capital gain.

Since yours is a case of intestate succession (expired without making a WILL), the sales consideration will go to each OWNER.

The capital gain shall be computed in the hands of each OWNER separately.

You can claim the INDEXATION benefits as well.

For actual computation of capital gain, you need to provide the figures of considerations.

Arun Babaji Gajmal

Arun Babaji Gajmal (Querist)
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08 September 2015 Thanks for reply
my father purchase flat Rs.356000/- and now we sale the same Rs.2458500/- amount

Amol S Joglekar

Amol S Joglekar (Expert)
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09 September 2015 Assuming flat purchase in Financial year 2002-03...the index was 447
Assuming flat sale in Financial year 2015-16 ...the index is 1081

The indexed cost of acquisition
= 1081/447 X 491700 = 11,89,100

Long Term Capital Gain = 24,58,500 -11,89,100 = 12,69,400

This gain is divided into 5 (mother, 2 sisters and 2 brothers; including you)

Each one's share in long term capital gain is 12,69,400/5 = 253,880

Each one needs to pay income tax on capital gain + other income if any.

Arun Babaji Gajmal

Arun Babaji Gajmal (Querist)
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12 September 2015 Thanks for reply

my another query is suppose all member give amount to one member & that member purchase new flat (individual name )in that case also all member require to pay capital gain tax?

Amol S Joglekar

Amol S Joglekar (Expert)
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12 September 2015 each one has to check if his/her gain is taxable. Once that is taken care of, anyone can give any amount to any other. There is no any bar.

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