Celebrate Freedom and save 20% OFF on CAclubindia Pro Subscription! Use code: FREEDOM20

Capital gains

11 February 2016

sir/madam

My friends mother recd her share of property form her father 3 yrs back which was worth 10 lakhs. now she is planning to sell the same for rs 13 lakhs. does she have to pay capital gains tax. she does not have any other income. she is also not aware of the price of the property bought by her father. how to calculate capital gains.pl reply

Reply
Follow
Share

3 Replies

CA GOKUL RAJ R (Chartered Accountant) (151 Points)
Replied 15 February 2016

Hi Suja,

For selling the property she is supposed to have the deed or any will of the property. if so, from such document she can get the original title deed from the jurisdictional Sub Registrar office.

As it seems to be a long term capital asset, the indexed cost of acquisition shall be calculated for computing capital gain and tax.

Thanks

CA Gokul Raj

Upgrade to CAclubindia Pro. Subscribe Now!

suja pirama (133 Points)
Replied 18 February 2016

Sir,

thank you for your reply.one clarification.pl let me know what will be the purchase value. whether will it be the value brought by her father or the market value at the time she recd the will.

thanks

sujatha

CA GOKUL RAJ R (Chartered Accountant) (151 Points)
Replied 19 February 2016

Cost of acquisition of the property shall be the cost which incurred by the previous owner in case of the property is acquired by gift or will. hence in your case, the cost of the property shall be the cost incurred by her father only.

Thanks

CA Gokul Raj