26 July 2010
suppose there is a property that has been purchase from the kings ruling the country around 200 years a ago.this property has been transferred from generation to generation and the seventh generation of the family sold the property will this attract capital gains? coz somebody told me that any property that has is 100 yrs old will not attract capital gains under the Income Tax Act? so please help me out n do let me know how to calculate the capital gains in that case...??
27 July 2010
Annual value of palaces of former rulers [Section 10(19A)] - The annual value of any one palace in the occupation of former Rulers would be excluded from their total income provided such annual value was exempt from income-tax before the de-recognition of Rulers of Indian States and abolition of their privy purses.
but this is not exactly the answer which you want.
27 July 2010
Fair Market Value as on 1-4-1981 will be considered as cost of acquisition. Indexed cost is allowed. Sale Consideration less Indexed cost of acquisition and indexed cost of improvement equals to Long Term Capital Gain.
28 July 2010
thank u so much but yet i am not satisfied with the answer because this is the way i calculated it but some one told that only 0.02% tax would be applied on such capital gains. i will verify again but do provide me info if u get any in this regard.
28 July 2010
I have not found any specific exemption from computation of Capital Gain based on case given by you. If you come accross such specific provision, then please let me know also.
CAclubindia
