Hi friends,
I need a clarification for the following transaction.
Mr X acquired an open land adm. 1000 sq. yards in 1980 and after his expiry his 3 sons got the property by inheritence in 2007. Now on the open land a residential apartment is built and sold . What is taxation treatment and tax planning options available for the assessee.
Since the 3 sons have received the land as inherited property, the cost of acquisition shall be considered that of the previous owner i.e. the father.
In this case, the Fair market Value shall be considered as COA as on 01.04.1981.
The capital gains shall be payable by the sons as per their share in the property. Subsequent investments in house properties respectively or REC, NHAI bonds may save cap gains tax,
CAclubindia
