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ENQUIRY ABOUT TAX LIABILITY

vinod sharma (self employed) (54 Points)

23 May 2023

we brothers jointly purchased a residencial flat In DEC.2022 in which i paid my share amount Rs 606000.after that we brothers sold our ancestral property in Feb 2023 (which was purchased in 1955) and i received my share Rs132500 which is lesser than share of flat purchase value.

pls guide me whether long term capital gain liability will APPLY or NOT.Purchases was made before sale in same FY 2022-23

thanking you

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7 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 23 May 2023

There would be long term capital gain over sell of your ancestral property share, but it would be exempted under sec. 54 of IT act, as investment in new HP.

In short, there would not be any long-term capital gains TAX liability.

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sabyasachi mukherjee (26043 Points)
Replied 23 May 2023

What's the capital gain on selling ancestral property. Cost of accquisition and capital gain.

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shivani (student) (115 Points)
Replied 23 May 2023

You need to take indexation cost of aquisition. as the ancestral property is purchased before 2001 you need to take FMV as on 01/04/2001 to calculate indexation cost of aquisition.(ICOA)
deduct this ICOA and cost of improvements /indexation cost of improvements, if any from the fair value of consideration you received to get long term capital gain.

1 Like