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Taxability of LTCG

prameela (officer) (23 Points)

14 August 2020

If a person sells his property which was purchased 30 years back and distributes the proceeds between his sons, how the LTCG calculated?

Is it taxable in the hands of seller irrespective of transfer of proceeds to legal heirs?

Can the gain be utilized to clear the existing housing loan to get relief from tax?

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3 Replies

Alok Ranjan (17 Points)
Replied 14 August 2020

LTCG is in hand of legal owner

Yudhishthir Sharma (Article) (207 Points)
Replied 14 August 2020

Mr. Prameela
Capital gain calculate as follow : -
FVOC - Net consideration

COA( with indexation) - Fair market value on
1/4/2001 or Cost,
whichever is higher

Long term capital gain. =. ××××××××××××

Above capital gain will be taxable in hands of seller, not in hands of legal heirs.

No exemption benefit available on clear of home loan.

debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 17 August 2020

FMV or Fair market value is entered by the user as per what is mentioned in the Budget 2018. The LTCG tax liability is calculated assuming: You have entered all long term capital gains / loss transactions which are subject to the proposed 10% LTCG tax plus 4% cess for FY 2018-2019.