Hello,
My father received Rs.5.00 lakhs as sale proceeds from the sale of property. The following are the details of the case :
1) The property was under the 'PAGRI' system in Mumbai, i.e. long tenancy arrangement wherein the owner has paid a consideration for surrender of tenancy rights.
2) The property was acquired in 1951 for an unknown sum and the rent receipt was in the name of my Grandfather who died in 1993.
Please address the following queries :
1) Is there a Capital Gain in view the following ?
a) The Rent receipts were in the name of my Grandfather.
b) The property was sold by my father after death.
c) The sum is received as inheritance.
2) Can the sale consideration be considered as 'Capital Receipt' or Gift from Grandfather after death ?
Please clarify.
CAclubindia
