i have query in followng case
if we any one received share of Income from sale of Property of Mother's Mother Property,
the property is very old May be older than 40-50 years having no purchase record,
now Mothers age is more than 60 years
amount received is RS. 5,00,000
is the total amount will be taxable or what is tax treatment
Please guide in above case
Thanking You
You shall have to find out the fair market value at 1st April 1981 by a certified valuer for that property.
Sale Consideration/stamp value whichever is more ...........
Less:-
Indexed cost of (fair market value as on 1981)(in your case) ................
Indexed cost if improvement/development in property ...............
selling exp(if any) ............ ...........................
Long Term capital gain .......................
Exemption can be claimed u/s 54/54F/54EC/54B up to the amount of investment is made in 54 EC Bonds/residential house/agri land etc sub. to some conditions.
Remember only part of your share has to be calculated.
If you do not consider indexation then the tax rate will be 10% otherwise 20%(exclusive of surcharge and cess).Further basic exemption limit will also be available.
CAclubindia
