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Capital gain on gifted house

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Singh Kamboj

295 Points Posted on 24 July 2023

one residential house situated at Chandigarh was gifted through registered girt deed on 11-5-1973 I favour of Mr. A. after the death of Mr.A this house was inherited by children of Mr.A i.e; one son and three daughters. all three daughters transfer their share in favour of her brother through register transfer deed on 27-8-2020. The son of MR.A sold this house in the month of July 2022 for the amount of Rs. 30,00,000/-. the said amount is received by son the Mr.A in his bank account between July 2022 to December 2022. my query is this consideration amount is taxable as long term capital gain or not. if yes pls how to calculate. kindly advice me .

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Quick Summary

This discussion addresses the capital gains tax implications of selling a house originally gifted in 1973. The property was inherited by Mr. A's children, and later, the daughters transferred their shares to their brother. When the son sold the house in 2022, the key question was whether the sale proceeds are taxable as long-term capital gains. The consensus is that it is taxable, and the cost of acquisition should be determined by the Fair Market Value (FMV) as of April 1, 2001.