Tax On Sale Of Ancestral property

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Querist : Anonymous

Querist : Anonymous (Querist)

25 January 2011 A land which is inherited(don't know the purchase date), now i want to sale it and its market value is rs 1 crore. and i need to know about my tax liability against Income tax and suggest me if any tax saving plans for the capital gain arising from sale of land.

Guest

Guest (Expert)

25 January 2011 What is the nature of property

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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26 January 2011 Moondraji is right.

..........................................

Bhai Saheb,

Aap to EK CRORE Ka Sawaal ai-se poochh rahe ho jaise KAUN BANEGA CROREPATI ME KOI POOCHH RAHA HO !

Just give us some options.

(i.e. give some details).

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Querist : Anonymous

Querist : Anonymous (Querist)

26 January 2011 @ Rakhecha Jee
Suggest me what type of details u need to resolved my problem?

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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26 January 2011 Right Sir.

1. There is always difference between market value, Actual Value and Municipal value for registration.

2. Whether the land is agricultural land.

3. Whether you own one house.

4. Whether you are interested to invest the money in Capital Gain Account with Bank.

5. Whether the land is being shown in your HUF ?

6. The most important is in whose name the land is registered ?

7. Otherwise how you will prove your ownership ?

8. How many shares are there in the land i.e. of your brothers', sisters' and mother's?

.
.
.
.
.

If there is a registered documents either in your father's name or grandfather's name; then that date would decide when the land was purchased.
.
.
.
.
If you don't have ownership document, it would not be possible to sale the land.

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Querist : Anonymous

Querist : Anonymous (Querist)

26 January 2011 Thanks Sir.

1. There is always difference between market value, Actual Value and Municipal value for registration.
## Regarding this i don't know the actual value and Municipal value of the land.##
2. Whether the land is agricultural land.
## No, Land lies in the market area.##
3. Whether you own one house.
## Although i live in my ancestral house.##
4. Whether you are interested to invest the money in Capital Gain Account with Bank.
## Yes. ##
5. Whether the land is being shown in your HUF ?
## No. ##
6. The most important is in whose name the land is registered ?
## Grand Father ##

7. Otherwise how you will prove your ownership ?
## No Problem Of That ##
8. How may shares are there in the land i.e. of your brothers', sisters' and mother's?
## There Is No Share ##
.
If there is a registered documents either in your father's name or grandfather's name; then that date would decide when the land was purchased.
## Not Recognised The Date OF Purchased ##

If you don't have ownership document, it would not be possible to sale the land.

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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26 January 2011 The following is the pointwise answer :

1. There is always difference between market value, Actual Value and Municipal value for registration.
## Regarding this i don't know the actual value and Municipal value of the land.##

Consult one Civil Advocate who deals in Land Registry.

2. Whether the land is agricultural land.
## No, Land lies in the market area.##

OK.

3. Whether you own one house.

## Although i live in my ancestral house.##

This is your HUF Property.

4. Whether you are interested to invest the money in Capital Gain Account with Bank.

## Yes. ##

OK

5. Whether the land is being shown in your HUF ?
## No. ##

I presume that you have no HUF Income Tax file so far.

6. The most important is in whose name the land is registered ?
## Grand Father ##

This is also an HUF property.

7. Otherwise how you will prove your ownership ?
## No Problem Of That ##

OK.

8. How many shares are there in the land i.e. of your brothers', sisters' and mother's?

## There Is No Share ##

OK.

If there is a registered documents either in your father's name or grandfather's name; then that date would decide when the land was purchased.

## Not Recognised The Date OF Purchased ##

The abovesaid civil advocate can do this job.

The above answers are just for undertstanding the facts in perfect manner.

It is my kind advice to you to consult one expert CA of your city otherwise you may face problems either of paying more taxes or making use of your likely funds in the best manner.

Note : All CAs are not expert in HUF cases.

Hint : After forming HUF on I T Records, partition thereof may help you in legitimate tax planning.

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Guest

Guest (Expert)

27 January 2011 I support the views of Surendra Ji.

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Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2011 @CA Moondra
Thanks Sir