Is Acestral Property taxable?

Tax queries 1253 views 9 replies

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

Replies (9)

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"

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].

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

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..

 

Go through Section 45 to 54

Chargeablity Under section 45

Computation of capital gain under section 48

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   

thanx guys!!!!

again amir is right.............

S... it is taxable in ur hands if u are the legal claimant.....completely agree with Amir....

Cost of Acq. - cost of previous owner....

For Indexation - year in which previous owner acquired the property...


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