Valuation of inheritance property

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When valuing an inherited ancestral property for your balance sheet, consider using the stamp duty value or the circle rate as of April 1, 2001. This value also serves as the cost of acquisition for calculating capital gains tax upon sale, especially when the previous owner's cost is unknown.

Kartik

Kartik (Querist)

07 November 2021 If person received ancestral house property (residential flats) from his grandfather, what value to be shown in balance sheet( whether stamp duty value or nominal vaule of Rs 1 etc.). Also cost of previous owner is also unknown. Also plz guide tax treatment at a time of sale of the same

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

07 November 2021 You can consider guidance value i.e Circle rate of the flat as on 01.04.2001.
The same will be considered as COA for capital gain calculation.

Kowsalya

Kowsalya (Expert)

07 November 2021 As the cost to the previous owner is unknown, and it is the ancestral property, you can arrive at the cost of acquisition by considering the market value of such area as on 01.04.2001 for the purpose of calculation of capital gains.

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