CGT

Querist : Anonymous (Querist) 09 July 2010 This query is : Resolved
Sir,
One land was purchased by my father in 1965 at Rs 9000/-. But now the market value of it is 2.5 cr. Also we have made some development like boundary and well etc. We r five heirs and each will get 50lakhs. If we sell it how much tax will be payable. Is there any other option to save the tax, since we do not have any other income and is sole property. Plz. suggest.
thanks and regards.

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Kumar Thadhani (Expert) 09 July 2010
First of all your query is not clear.It seems that your father has died.You are all five legal heirs. Is the land registered under the Land Records in the name of five legal heirs.Then it sis possible to save tax and spread the Capital gains Income amongst all the five legal heirs.Further you say it was purchased in the year 1965.However for the Income Tax purposes the base for the Cost of land and its developement costs on this land and the cost of indexation is fixed as base on as 1stApril 1981..First of all you will get determine cost of land as its market value as on 1st April 1981, to deterime the exact working of Capital Gains Tax.

Querist : Anonymous (Querist) 09 July 2010
Sir, Thanks for ur kind reply and will go by your advice.
It is in the name of my mother who has died three yr. back was purchased by my father in 1965 till now it vacant. Including my father we r five legal heirs. Registered deed is in my mother's name. We all r united in all respect.
With regds

soumitra basu (Expert) 05 August 2010
You can purchase flat individually or invest in bond under section 54EC to save tax.

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