Capital gains tax on sale of ancestral house

Whether its a inherited property, if so wil attract long term capital gain on their respective shares. They can claim(as deduction) indexed cost of acquisition on the basis of FMV of the property as on 1.4.1981. B4 this u can deduct expenses incurred for selling that property. For althese 1st u need to findout whats the fair market value of the property as on 1.4.1981.

whether its a long term or short term capital gain is depends on in which yeay those people inherited property from ur grandfather. If they have hold the property for mrthan 3 years b4 the date of sale, the final calculated figure wl be treated as long term capital gain else short term. Need althose information(as i said above) for computation of tax. I have sent pm. U can mgs for any queries.

First compute LTCG. Find out the market value of the property as on 1981 to come at the cost of acquisition. You may reinvest in another property and claim exemption u/s 54. Each one will have LTCG and have to invest u/s 54 and accordingly file ITR.

it can be short term capital gain as you say it is an ancestral property. fmv as on 01.04.81 will be divided in 5 equal shares and then indexed to calculate long term capital gain. any expenses incurred on trf. of property will be reduced for calculation of capital gains.

Sir In such a case the holding period shall be computed from which the previous(i.e. grandfather) hold such assets So it is LTCG & calculated as below Proportionate sale consideration xxx (-)proportionate selling exp. xxx (-) prop. indexd cost of acquisition xxx LTGG xxx

As per income tax, for calculating whether an asset is short term or long term for the property inherited by a person. The period shall start from the date when such asset was first held by the previous owner i.e., from the date acquired by Grandfather