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PROPERTY SOLD CAPITAL GAIN

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MURALIDOSS

INCOME TAX PRACTITIONER

1023 Points Posted on 14 July 2023

SIR,

A PERSON GOT FROM HIS FATHER AS SETTLEMENT WITH THE VALUE OF 3 LAKHS MUTUAL SETTLEMENT OF A TILED HOUSE 10 YEARS BACK FROM NOW,

3 YEARS LATER HE BUILD A HOUSE NOW HE SOLD THAT HOUSE BUILDING FOR RS.25 LAKHS IS IT HE NEED TO DISCLOSE THAT AMOUNT AS CAPITAL GAIN?

Replies (2)

Quick Summary

If you sell a house property that you received from your father as a settlement, you generally need to declare any capital gain or loss in your Income Tax Return (ITR). The cost for you is considered your father's original cost, and the holding period also includes his. If your father acquired the property before April 1, 2001, you might use its fair market value as of that date to calculate your capital gain.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 14 July 2023

Yes, he has sold House property.

He should declare capital gain/loss over it in ITR 2

Aashok Kumar Sharma

Finance/Compliance Consultant

77025 Points Posted on 08 November 2026

Property received by settlement from the father:
• Property received from a father by a settlement deed (gift) isn't a transfer (Sec 47(iii)). Cost for the son = the father's cost (Sec 49(1)), and the holding period includes the father's. The settlement value (Rs 3 lakh) isn't the cost.
• If the father acquired it before 1 April 2001, use the FMV as on 1 April 2001 (capped at SDV then).
• On sale: LTCG computed accordingly. Exemptions under 54/54F/54EC.