Dear Sir/s. Kindly help clarify below situation.
Y1980: A property is purchased by father .
Y2011: After father pass away, it is inherited to 4 legal heirs in Y2011.
Y2014: 3 legal heirs relinquish legally via a relinquishment deed to 4th legal heir.
Y2014: 4th legal heir decides to sell the property.
Please help in below clarifications.
Q1. Is the ownership of 4th legal heir considered as "Inherited Property" or "Relinquished property. Are they one and same in this situation?
Q2. If the 4th legal heir - now absolute owner sell this property Is the sale proceeds under this considered as LTCG. NOTE that the proprty when relinquished and sold is less than year.
Q3. One of the advisors we enquired mentioned this will qualify to Short Term Capital Gains as the selling happened less than a year. Their point of discussion was that since this came to 4th legal heir via relinquishment and selling is happening in less than a year of absolute ownership, this has to be considered as Short Term Capital Gain. Now we are confused.?
CAclubindia
