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Income tax on property inherited from mother and now sold

varun sareen (officer) (27 Points)

25 February 2021

What is tax implications on house property inherited from mother who bought it in 1950 and now sold by us in Feb 2021? We inherited it in 2018.

What indexation is applicable?

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4 Replies

Prajakta (Student CA IPC / IPCC) (89 Points)
Replied 25 February 2021

Yes indexation can be claimed from year of first purchase (as per a decided case)
In this case as purchase is before 2001 you can take indication of 2001..

Kapadia Pravin (17249 Points)
Replied 25 February 2021

Adopt FMV of house property as on 01-04-2001 and calculate indexation

shiva sai (student) (76 Points)
Replied 25 February 2021

Cost of acquisition for previous owner will be the cost of acquisition for the present owner.
as the property is bought before 2000-01, take market value (stamp duty value) as cost of acquisition. calculate indexation.

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