Tax on sale of inherited property
This query is : Resolved
19 August 2018
Dear Sir
My father in law had constructed 4 floors and gifted each floor to his 3 daughter's in year 2012 and in one he is himself staying. My wife also the recipient of the floor via gift deed in year 2014. In the year 2018 my wife sold the property in June 2018 at a consideration due to finance requirements .
Kindly advise if the proceeds are taxable as per law since the property was inherited.
If yes what is the way to save tax.
Thanks
My father in law had constructed 4 floors and gifted each floor to his 3 daughter's in year 2012 and in one he is himself staying. My wife also the recipient of the floor via gift deed in year 2014. In the year 2018 my wife sold the property in June 2018 at a consideration due to finance requirements .
Kindly advise if the proceeds are taxable as per law since the property was inherited.
If yes what is the way to save tax.
Thanks
19 August 2018
your wife liable to pay LTCG Tax. You have to Either Invest CG on Another's property, Your wife Should not own any other Property to Claim CG, otherwise you can invest Capital Gain Bond Maximum 50 lakhs for Locking Period of 5 Years to save Tax, Internet earned is Taxable as and when it get accrued,
If You Not invest than your wife Liable to tax@20% Plus Applicable Cess 3 or 4%.
If You Not invest than your wife Liable to tax@20% Plus Applicable Cess 3 or 4%.
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