Long Term capital Gains

Sir - one of my relative inherited a property from her Grand Father. She decided to sell that property for 30L.

She got 15L as 1st Installment during year 2016 Jan and she parked that amount in capital gains account FD

She got next installment during the year 2017 Jan for 15L and she parked that amount in normal FD (time deposit).

 what is the way to utilize them or liquidate them (if she doesn't want to invest them back in real estate)

 

Thanks

Replies (6)
Quick Summary
This discussion clarifies the tax implications of selling an inherited property. If sale proceeds aren't reinvested in another property within the stipulated time, the capital gains become taxable. Funds parked in a normal Fixed Deposit are not considered a Capital Gains account and their interest is taxable. The entire sale consideration from 2016 is relevant for capital gains calculation, with tax due in FY19-20 as the reinvestment deadline has passed.

WHAT IS CAPITAL GAIN FD?IST INSTALLMENT IF RETAINED IN A NORMAL BANK ACCOUNT WITHOUT ANT INVEDTMENT IS TAXABLE.
1) If such sale consideration is not utilized for buying another property within the specified time limit (3 years for construction), income to the extent of capital gain would be taxable in the PY in which the time limit is over. 2) In this case, since 3-year time limit is over in Jan 2019, capital gain would be taxable in FY19-20. 3) CG Deposit can be withdrawn now because 3 years are already over. 4) Normal FD will not be considered as CG deposit. The interest income from such FD would be taxable, as applicable.
The whole of 30 lakhs will be considered inyear 2016 for capital gain purpose.

Only capital gains (i.e. sale consideration - cost of asset) will be taxable in FY 19-20.

Entire consideration for transfer of capital asset falls within the purview of capital gains.
So such capital gains is taxable in India unless invested in capital gains account scheme.

Cost of acquisition in case of inherited property is cost to the previous owner.

https://cleartax.in/s/how-to-calculate-capital-gains-tax-on-sale-of-inherited-property

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