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Capital gain

Arun Kumar (4 Points)

06 September 2019

property received in ancestoral and want to sell today.. capital gain arising or not

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12 Replies

Pranav Aggarwal (469 Points)
Replied 06 September 2019

capital gain will arise in the year in which transfer tooks place

Kapadia Pravin (17249 Points)
Replied 06 September 2019

Yes sir Capital Gain arises.
Cost of acquisition will be cost prevailing as on 1-4-2001 + indexation.

Sale consideration minus indexed cost will be your LTCG

1 Like

Sahil (student) (28 Points)
Replied 06 September 2019

surely capital gains will arise

Arun Kumar (4 Points)
Replied 06 September 2019

how to save tax on sale of such property

Sahil (student) (28 Points)
Replied 06 September 2019

Benefit of section 54 or 54F and section 54EC can be taken to save tax on sale of such property.

Kapadia Pravin (17249 Points)
Replied 06 September 2019

Benefit available
Under 54 - on sale of residential property and re-investing into residential property

Under 54F - sale of non-residential property and investing into new residential property (provided you are not owing any house)

Under 54EC - Sale of residential property and investing into Capital Gain bonds of NHAI REC upto a maximum of 50 lakhs.

Manikanta juluri (Student) (252 Points)
Replied 06 September 2019

Yes capital gain is arises.
Tax calculated on Sell consideration minus Indexed cost of Acquisition then Tax on Long Term Capital Gain

pooja (taxpracticing) (243 Points)
Replied 06 September 2019

yes capital gains will arise .... and deduction u/s 54 54F and 54EC is allowed

Jinal Dabhi (std) (84 Points)
Replied 06 September 2019

LTCG capital gain is arises.

Tax calculated on Sell consideration minus Indexed cost of Acquisition then Tax on Long Term Capital Gain.

Exemption u/s. 54/F/EC can be availed.

4 Like

sowmiya (ca) (29 Points)
Replied 06 September 2019

Cost of acquisition will be the cost paid by the previous owner and need to indexed if it LT

Kapadia Pravin (17249 Points)
Replied 06 September 2019

Benefit available is based on type of ancestral property ---

Under 54 - on sale of residential property and re-investing into residential property

Under 54F - sale of non-residential property and investing into new residential property (provided you are not owing any house)

Under 54EC - Sale of residential property and investing into Capital Gain bonds of NHAI REC upto a maximum of 50 lakhs.

sabyasachi mukherjee (26039 Points)
Replied 07 September 2019

Sale Consideration
less:
Indexed cost of acquisition
less:
any expenses incurred
LTCG
apply Provisions of sec 54 F
there is a transfer of new purchased residential house or a new house property .
the capital gains will be exempted if it is within a period 3 years.
exemption from nhai bonds will be given if it is invested within a period of 3 years.(Sec 54EC)