Income tax

For IT returns for the FY 2010-11 or AY 2011-12, there shall be no change in her balance sheet. Since she has received the small room by way of a Will, it is tax free in her hands. However, in the FY 2012-13, she sold that room for which she will be liability to capital gain tax. In case she has rented out that property during the AY 2011-12, then she will have to show income from house property. But for personal reporting purpose, one can show the small room as an asset at market value. But wait for others to reply.