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Income tax on property inherited from mother and now sold

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varun sareen

officer

27 Points Posted on 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?

Replies (4)

Quick Summary

This discussion clarifies the Capital Gains Tax (CGT) implications when selling a property inherited from your mother. Key points include determining the cost of acquisition, which can be the original purchase price or the fair market value as of April 1st, 2001, if purchased before that date. Indexation can be claimed from the year of the first purchase, allowing you to adjust the cost for inflation up to the sale date.

Prajakta

Student CA IPC / IPCC

62 Points Posted on 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

10683 Points Posted on 25 February 2021

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

shiva sai

student

56 Points Posted on 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.