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capital gain on sale of ancestral property

(Querist) 23 November 2008 This query is : Resolved 
hi my father has got a share in house property of my grandfathre.there are three shares.the property is old house bought in 1960.the will is of 1994. wht are the effects of sale considration to my father .and wht shall be the capital gains and tax thereof if the property is sold for 30 lakhs. how the capital gain tax be father has a personal i t file and also huf i t file
Manish Singh (Expert) 25 November 2008
the tax liability shall be taken after complying with the following formula ;
get fair market value of the property(land + property) on 1st April 1981.
then multyply it with index of 2008 divided by 100.
then deduct it from the sale proceed.
you will get your capital gain after dividing it with 3.
Now you must use this gain for residential property either within one year before or three years after the gain. you can also use this amount for construction for residential purposes only.
rajesh garg (Expert) 26 January 2009
capital gain will be taxable on the sale of ancestral property after deducting cost of acqusition,exp.,taxes etc.

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