Basic data:
Family branch head A gets leasehold land to run govt aided school in 1950. Later on, the land gets vested in A under state Act. A had wo wives; has 1 son and 1 daughter in First wife and 1 son and 3 daughters in second wife. On the death of A, second wife became the manager. Subsequently both wives also expired.
Family branch head B (related but not brother of A) has 4 sons.
In 1993, 4 daughters of branch A relinquishes their 4/7 shares in school property share in favour of 4 sons of family branch B for Rs.10,000/-.
Current owners: 2 sons from branch A and 4 sons from branch B.
School sale in 2015 for Rs 48 lakhs.
Current owners have been managing school since 1993 and spend average Rs.1 lakh per year on building maintenance, etc. Also spent Rs 7 lakhs on additional building construction in year 2000.
How to calculate indexed value when original acquisition cost is unknown.
What are the tax liability? Is the tax liability individual or combined?
Thank you for guidance
.
CAclubindia
