Tax liabiliy: parental property
Ravi Mishra
(Querist) 19 February 2012
This query is : Resolved
Kindly advise on the following;
Parental property acquired by father some time in 1972-73.
Said property was sold & 1/8 share i.e Rs.1.75 lac received by one of the heirs.
Kindly advise tax liability on Rs.1.75 during 2011-12.
C. P. CHUGH
(Expert) 19 February 2012
Dear Ravi,
As the property was acquired by your father prior to 01-04-1981, first of all you will have to get the value of the property as on 01-04-1981. For this purpose you can have the assistance of a registered valuer. Once the value as on 01-04-1981 is determined, you need to get the indexed cost which can be obtained by multiplying the orginal cost with cost inflation index of the year of sale and divided by cost inflation index of the year of purchase (in your case for the year 1981-82).
Your Sales Realisation minus indexed cost be Long Term Capital Gain which will be taxable @ 20% flat.
Thanks
A V Vishal
(Expert) 19 February 2012
Well guided by Mr Chugh, however, please note that your share is 1/8th and hence calculation may be suitably made.
Vineet
(Expert) 20 February 2012
Well adivesd by Mr Chugh.
One more fact required. Who sold the property, Father or legal heirs as joint owner of the property? Will make a difference as to the person in whose hand taxability arises.
Rajeev Kumar
(Expert) 20 February 2012
Well advised by Mr.Chugh
