06 June 2019
My late father had purchased 6000Sq.ft land in the year 1940 at Rs. 2,000/- and a built a house for which he spent around Rs. 10,000/-. After he passed away I became entitled to 1/4 share. The property was handed over to a developer and he has built 6 flats. He has retained 2 flats and out of the remaining 4 flats, I get one flat. The remaining 3 flats are for my sister and brother. The developer has sold one of the two flats for a sum of Rs. 2.5 crores. If I sell my flat immediately at the same price, what will be the short term capital gains tax I will have to pay? If I sell it after 2 years, what will be the long term capital gains tax I will have to pay? I shall occupy the flat for 2 years or rent it out if I sell it after 2 years. I do not have any other flat or house at present. K.A.N. Iyer
06 June 2019
The entire consideration for the sale of flat shall be short term capital gain. You can sell it after 2 years and opt for long term capital gain
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