22 August 2008
Property received form inheritance is not taxable. When these brothers sale the property it will be taxable as capital gain. The cost of acquisition for the same is same as to their father. When brother 1 pays rs. 10 lacs then it is the cost of acquisition to him. at the time of sale he can claim it.
But my query is whether any capital gain will arise in the hands of brother 2 at the time of receiving Rs 10 lacs since this amount is not received by him by way of inheritance
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