Capital Gain Tax on Sale of Property inherited

Hi,

i sold property of my father purchased in 27.04.2005 for Rs.197400/- after his and my mother death.  He dies on 15.08.2009 and my mother died on 11.02.2010.  i have two brothers and one sister.  i sold the property for Rs.20 Lakhs and paid a commission of Rs.45,000/-.  Each one got a share of Rs.5 Lakhs by DD.  As i wanted to pay tax and use the money, kindly advise me how much tax i need to pay ?  i have made a rough calculation and advise me if the same is correct.

Cost of property purchased on 27.04.2005     Rs.1,80,000 + commission of Rs.17,400     Total   1,97,400.00

Cost of sale of property in Oct 2010                  Rs.20,00,000 - commission of Rs.45,000    Total 19,55,000.00

Short gain capital gain                                                                                                                                   17,57,600.00

my share                                                                                                                                                             4,39,400.00

Awaiting for your kind advise.

Regards

SIVAPRAKASH

Replies (2)

197400*711/497=282397 indexed cost of property

2000000-45000 commission paid = 19,55,000 - 2,82,397 = 1672603 total long term capital gain

1672603 /4 =418151

 

each person who have receipt will have to pay tax @ 20% on this amount towards LTCG 

If you dont have to ay the tax you can opt fot the investment option under which the amout of capital gain is to be invested in purchase of new property or investment in capital gain investment bonds.

As you sold the pe\roperty in last month only you can invest it i capital gain investment bond within six month for the sale of property.

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