Capital Gains

Muralidharan (Self Employed) (1034 Points)

11 August 2009  

A women had died during the year 2007. Her husband has died long before. They have no children. She has left behind some fixed deposits and a residential flat. Her brothers and sisters after obtaining a court order disposed off her flat. The consideration and fixed deposits amounts were shared among the brothers and sisters. Each brother / sister got Rs.3.80 lacs during the financial year 2008-09.

All the brothers and sisters who got the money are senior citizens and hence can claim basic exemption upto Rs.2.25 lacs (for asst year 2009-10). I believe any income / amount received by them over and above 2.25 lacs is taxable

Forum members kindly advise whether the amount received by the relatives will be treated as normal income or under capital gains. If treated as capital gains whether the same is eligible for any indexation.

What is the rate of tax under capital gains and how to work out the same.

with regards

Muralidharan