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Is Acestral Property taxable?

Krishnasai (Articles) (55 Points)

12 January 2010

Suppose if i sell my ancestral property to a builder for a consideration. Is the money taxable?

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9 Replies

Amir (Learner) (4016 Points)
Replied 12 January 2010

Dear Krishnasai,

Yes the gain arising on sale of property would be taxable in ur hands, if u r the only legal claimant of that property...Otherwise in proportion to ur share...

For calculating Gains " Cost to previous owner" will become the cost of acquisition...

For indeaxation purposes - "period for which property was held by previous owner shall be included"

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 12 January 2010

Hi Dear, if the property is sold, then it definately generates taxable long term capital gains (at the rate of prevailing year) for the -

Price between the sale price and higher of purchase price (to the real owner) or 1981 value [with indexation].

Krishnasai (Articles) (55 Points)
Replied 12 January 2010

can u pls tell me under which sec it is taxable and also how to calculate the tax

Amir (Learner) (4016 Points)
Replied 12 January 2010

Dear Krishnasai,

I would definately tell u under which sec it is taxable but before that could u plz tell me under which sec it is exempt ???

Anyway, Jokes Apart, My friend it is taxable u/s 45 simply because it is nowhere excluded..

Bimal Thacker (Proprietor) (762 Points)
Replied 12 January 2010

Go through Section 45 to 54

Chargeablity Under section 45

Computation of capital gain under section 48

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 12 January 2010

A standard computation of long-term capital gains is given below:

Particulars	Amount
Sale Consideration	XXXX
Less: Indexed cost of acquisition	(XXX)
Less: Indexed cost of improvement	(XX)
Less: Expenses incurred at the time of sale	(XX)
Long-term capital gains	XXX