We are 2 brothers, one sister & mother, have one ancestral property which our great grand father had purchased in 1932. It was inherited to our grand father who was the only son. Our grand father had distributed this propoerty to his 2 sons in 1995 thru a family settlement by a court in which all the 3 daugters and other family members were the witnesses.It means my father became owner of this property in 1995 legally. My father has expired in 2008 and idealy this property has been inherited to all 4 of us (2 brothers, one sister & mother). Now we are selling this property in 2012-13. The cost of purchase in 1932 was almost negligible. I have the following queries:-
- As it is an inherited property, the cost to previous owner should be considered. It means the cost which was in 1932 or the fair market value as on 1st Apr 1981 or in 1995 when my father became a legal owner of this property or 2008 when we became legal owner?
- How the indexation will work in this case......from 1981 to 1995 than 1995 to 2008 & than 2008 to 2012 or something else.
- If any gain arise on sale of the property, in whose hand the capital gain tax would be applicable from all 4 of us.
- If it is taxable in all 4 of us than can we buy new property jointly or individually to save the tax.
- Can we save the tax thru a HUF route, if yes, than what should we have to do.
It would be of great help if someone advise on this to us.
Regards,
Nitin Agarwal
+91 9971398485
CAclubindia
