Capital Gain

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11 Points Posted on 15 July 2020
Capital gain on sale of jointly owned ancestral property by 2 brothers
and the ways to save this capital gain.
Also in such a case of Inherented property what would be the cost of acquisition?
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On 15 July 2020 at 12:40 Report
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This discussion clarifies how capital gains tax is calculated on the sale of jointly owned ancestral property by two brothers. It explains that each brother calculates their capital gains separately, dividing the sale consideration equally. The cost of acquisition can be based on the father's purchase cost or the fair market value as of 1st April 2000. Tax on these gains can be reduced by investing in a new residential property or REC Bonds.

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Practicing Chartered Accountant
2481 Points Posted on 15 July 2020

Both shall calculate capital gains separately in equal proportion.

Sale consideration shall be divided equally among both.

For cost of acquisition, cost of purchase property of Father or Fair Market Value as on 1.4.2000 shall be considered.

Tax on Capital gain can be saved by investing sale consideration into new residential property or by investing in REC Bonds.

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On 15 July 2020 at 17:39
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11 Points Posted on 15 July 2020
Thanks for the answers dear Calligues...
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On 15 July 2020 at 18:42

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