Ancestral house sale query

Tax queries 788 views 9 replies

Udgam Koomar

Tax Technologist

1949 Points Joined August 2011

Hello, there was one parental house sold and proceeds distributed between 6 children. So in ITR of these children with no other income this income will be considered as income from other sorce or Income from house property or income from Capital gains regrds income tax calculation?? Please guide

Replies (9)

J. K. Ratan

Compliance Advisor

794 Points Joined August 2013

It will be treated as Income From "Capital Gain".

If there is no any other Income as you mentioned above than every member of ancestral property can claim basic exemption to Individual Rs. 2,50,000.00 (FY 2014-15). And if there is a minor member of ancestral property than his/her share of sale consideration shall be included in the income of their parent.

CA HAYEDAR SHAIKH

Practice

627 Points Joined June 2014

Agreed with the Jay Kumar.

Udgam Koomar

Tax Technologist

1949 Points Joined August 2011

Ok, thanx but regards CGains in returns ITR2, if the property sale price was say 1Lac, and the person in question got 15% of the proceeds, in his return, will the column>> Full value of consideration be 15000/-?? Which means all relevant colums will be calculated as per 15%??

J. K. Ratan

Compliance Advisor

794 Points Joined August 2013

Yes Mr. Uttam

You will have to show only 15% of sell consideration (as you mentioned) in concerned person's ITR.

Rajesh Chadda

Chartered Accountant

66 Points Joined April 2008

If ancestrol property was purchased in early 1930.what cost be taken. ???

Vivek Venkataram

Just cleared CS(441/800) now C.A Final A

772 Points Joined March 2009

Fair value/municipal value as of 1981.

Vivek Venkataram

Just cleared CS(441/800) now C.A Final A

772 Points Joined March 2009

Indexation will be unavailable for Purchase before 1981.

Take FV/MV on 1.4.1981

Vishal Goel

Chartered Accountant

1693 Points Joined April 2014

NOT AGREE WITH JAY

Originally posted by : Jay Kumar Ratan
	It will be treated as Income From "Capital Gain". If there is no any other Income as you mentioned above than every member of ancestral property can claim basic exemption to Individual Rs. 2,50,000.00 (FY 2014-15). And if there is a minor member of ancestral property than his/her share of sale consideration shall be included in the income of their parent.