Long term capital gain

408 views 3 replies

Sunanda Basu

Asst Manager

28 Points Joined March 2012

A freind of mine has got his ancestral house in Kolkata. The house was built by his grandfathers father almost a 100 years back. His grandfather had 2 more brothers. Today none of them are alive & there are now 11 people in the family related to these 3 persons. The house is now ready for sale & my freind and his mother will be getting their share of the sale value.

No one is aware of the aquisition value of the house & in the last 10-15 years, there has been no major repairs.

In view of the above, what will be the tax implication & how it can be avoided?

Please suggest.

Thanks.

Replies (3)

CA Goutam Sharma

Chartered Accountant in Practice

468 Points Joined June 2011

Please consult a local Regitered Valuer. He will give you the fair value of asset as on 01/04/1981. That value will be indexed by multiplying with 1024 and dividing by 100 : simply multiplied with 10.24. The resulting value will be deemed as Cost as on 2015. Now the sale value - Cost as on 2015 will be taxed in the hands of all the heirs in proportion of their respective share in the property.

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