Hi! Dear learned friends.
I came across an interesting case for computation of capital gains on sale of property. I request my learned friends to help me in computation of the tax liability. The facts of the case are thus:
Mrs X,(64yrs) an unmarried lady gets alloted a site in 1986. She constructs a house in 1998 and resides in the same till 2008. In 2008, she bequeaths the property, by way of a registered will, to her sister's 4 daughters, before succumming to old age.
The property now stands in the joint ownership of the 4 sisters who decide to sell the same in 2012.
Assuming the following costs were invovled(for the purpose of calculation)
at the time of allotment(1986) - Rs. 20,000
for construction of house(1998) - Rs. 4,00,000
sale value of the property(2012) - Rs.20,00,000 (this amount is divided equally among the 4 sisters.)
My query is :-
a: how do we decide on the capital gain. what is the tax liability.
b: what if the documentary proof for Rs. 4,00,000 (or part of it) is not available.
c: do we calculate the tax liability jointly, or individually for the 4 sisters.
Request advice in the matter
regards,
KK