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capital gain tax on inherited property
two sons inherited a house from parent and sold in the current financial year then how the capital gain tax would be computed. the land was purchased by the parent in 1985 and the house constructed in 1995 and construction of first floor in 1997. the property transferred to two sons in FY 2014-15 and sold by them in FY 17-18. also please note that the property is beyond 8km limit of any municipal area. kindly suggest.
Replies (3)
Get Valuation certificate of the property as on 1st April, 2001 from Govt. Approved Valuer.
Based on the value as cost of aquisition as on FY 2001-02, capital gains can be arrived.
The applicability of 8kms clause is only for Agricultural Land. As the property sold is House same, 8kms clause is not applicable.
Sale consideration= Sale Price/Stamp Duty value whichever is higher
Cost of Acquisition= Sum of the following:-
1) Land = FMV as on 01/04/2001with indexation
2) Construction of House = Indexed cost by taking FMV as on 01/04/2001
3) Construction of additional floor= Indexed cost (indexation from 1997)
Whole of cost can be apportioned between the sons in the ratio of property inherited
Sale- Cost = Capital Gain * 20% will be Capital Gains tax
Sale consideration= Sale Price/Stamp Duty value whichever is higher
Cost of Acquisition= Sum of the following:-
1) Land = FMV as on 01/04/2001with indexation
2) Construction of House = Indexed cost by taking FMV as on 01/04/2001
3) Construction of additional floor= Indexed cost (indexation from 1997)
Whole of cost can be apportioned between the sons in the ratio of property inherited
Sale- Cost = Capital Gain * 20% will be Capital Gains tax
thanks a lot mr. dhirajlal and mr. Pranay for your prompt response. I am impressed with my first experience with this app. appreciate your response.
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