Hi
My friends mother a widow sold a house on 22 march 2010.
This house was built on land acquired in 1955-60( tentatively-date is not known). Pieces of land were acquired at that time by many individuals so that they could build row houses and form a society. Unfortunately the said land pieces went under litigation and eventually this litigation continued till now. Some members although fought it out and finally the 3rd-4th generation enjoys the benefit where in the dispute came to end and the row houses were built.
The said land was purchased by my friends grandfather and transferred after his death to his son and then to his wife.
Now he ha sold the property on the above date
Questions
1. How to determine cost of acquisition in order to calculate Capital Gains.
2. To avoid the capital gains one has to invest in another property or invest in capital gains account scheme or specified bonds. When should this be done
Whether it should be before filing the return i.e 31/7/ 2010
or
Whether it should be within 6 months from the date of sale.
If it is within 6 months from the date of sale then what should the return filed on 31/7/2010 contain regarding Capital gains
She is a senior citizenand has only interest income
Thanks
Ninad
CAclubindia
