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Ancestral house sale query

Udgam Koomar (Tax Technologist) (1949 Points)

28 March 2015

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

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9 Replies

J. K. Ratan (Compliance Advisor) (794 Points)
Replied 28 March 2015

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.

1 Like

CA HAYEDAR SHAIKH (Practice ) (627 Points)
Replied 28 March 2015

Agreed with the Jay Kumar.

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Udgam Koomar (Tax Technologist) (1949 Points)
Replied 28 March 2015

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)
Replied 28 March 2015

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)
Replied 31 March 2015

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)
Replied 31 March 2015

Fair value/municipal value as of 1981.

Vivek Venkataram (Just cleared CS(441/800) now C.A Final A) (772 Points)
Replied 31 March 2015

Indexation will be unavailable for Purchase before 1981.

Take FV/MV on 1.4.1981

Vishal Goel (Chartered Accountant) (1693 Points)
Replied 31 March 2015

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.