07 December 2010
Hello Experts I sanjay an accountant want your valuable advise. My Question is: I have got a will of property registered from my father in 2007 after his death. I don't know the value of property in his books. Now I have sold that property in June 2010 for Rs420000/- and purchased in Oct 2010 for Rs460000/- in my wife name. What will be the tax I have to pay and how much? thanks sanjay
07 December 2010
Since in this query you do not know the cost of assets transfered, you may get it valued at the fair value as at 1/4/1981 and take this as a the cost of acquisition, if the assets is purchased before that.
The entire consideration should be invested to save taxes u/s 54F, For qualifying for the exemption under section 54F, it is necessary and obligatory to have the investment made in residential house in the name of the assessee only. - Prakash v. ITO [2008] 173 Taxman 311 (Bom.).
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