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sanjay (Querist)
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20 October 2010 Hello Experts
I have got the property vide regd will from my father in 2007. Now I have sold that property for Rs950000/- and the registry done is for Rs420000/-. I want to know the status whether it will be treated as taxable or exempt from tax.
According to my own knowledge Itis not taxable. Whether I am right or not. Kindly advise.
thanks & regards
sanjay

venkatraman shrinivas

venkatraman shrinivas (Expert)
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21 October 2010 Any capital asset upon its transfer attracts capital gains tax. Even though you had inherited the property from your parents, yet it has been divested by effecting a sale. The capital gains arising out of the sale, duly considering the index cost of acquisition and other attendant admissible expenses would become liable for Capital gains tax. From the information furnished, i is apparent hat the sale price has been under stated and the assessing Officer is entitled to substitute the actual sale price or the stamp duty value for arriving at the actual capital gains. Your presumption or understanding hat it is not taxable is not correct nor in tune with the law on the subject.

Abhay Gujarathi

Abhay Gujarathi (Expert)
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22 October 2010 No. It is taxable. Cost of Acqition is Cost of Acquisition is Cost to previous owner i.e. Your father and Sales Considaration is Stamp duty valuation if it is grater than Registry.

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