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Is income tax leviable on property inherited from mother

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varun sareen

officer

27 Points Posted on 25 February 2021

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

2is any income tax applicable or is such inherited property exempt from tax?

1.We inherited it in 2018. Is income tax applicable on capital gains from its sale ? At what rate?

How to calculate its capital gains ? Formula With indexation that is applicable?

Read more at: https://www.caclubindia.com/forum/income-tax-on-property-inherited-from-mother-and-now-sold-570773.asp

Replies (2)

Quick Summary

This discussion clarifies the income tax implications of selling property inherited from a mother. It confirms that capital gains tax is applicable, calculated based on the sale value minus the original cost of acquisition. For assets purchased before April 1, 2001, the Fair Market Value (FMV) as of that date can be used for calculation, and long-term capital gains (LTCG) are taxed at 20% with indexation benefits.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 25 February 2021

LTCG will be applicable on your case @ 20% with indexation benefit

Kapadia Pravin

10683 Points Posted on 26 February 2021

Capital gain will be sale value minus cost of acquisition to the original buyer that is your mother. since asset is prior to 01-04-2001, you are eligible to adopt FMV of inherited asset prevaling as on 01-04-2001.