Capital gains on sale of immovable poperty
This query is : Resolved
03 August 2024
A property was purchased in the year 1980. The same was inherited through a will by the grand daughter on the owner passing away in 2021. In this circumstance, what should be the cost of acquisition of the property for calculation of capital gains as per the new budget for FY 2024-25 ? Can the cost to the previous owner be considered as cost of acquisitin OR rate as on 01/04/2001 ? How to calculate and arrive at capital gains and tax on LTCG if the grand daughter sells the property in August-24 ?
03 August 2024
Cost of land or Fair Market Value as on 01.04.2001 at the option of assessee can be taken as cost of acquisition, but FMV shall not exceed stamp duty value. Also indexation benefit will not be available after the new amended law.
03 August 2024
Indexation benefit available for the property acquired before 01/04/2001. It's clarified by the income tax department.
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03 August 2024
Sir, the clarification was given on calculation of cost of acquisition if property purchased before 2001. Also the word used in amended section is "transfer" not acquisition. If clarification available kindly share for our knowledge.
04 August 2024
The government has clarified that indexation benefits for properties bought till 2001 will continue. This means the price of properties that were bought before 2001 will be taxed after factoring in indexation based on the price in 2001 or price at which it was bought plus indexation till 2001 whichever is lower, explains Revenue Secretary Sanjay Malhotra in a media interaction.
07 August 2024
Asper the latest amendments, assessee can choose between with indexation @20% or without indexation @12.5% which is lower in case property bought before 2001.
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