We plan to avail of Capital gains tax on an ancestral property transfer.
Since the property is already sold we will only be able to get a pittance of the actual value. We hae been told by some CA friend that IT will demand tax on the ready reckoner value and not on the actual we may receive for relinquishment of rights. Can the IT do this? If so, I do not want to go ahead with any such negotiations. The tax will work out to more than the amount I receive and could even make me a pauper!
Can this rate of taxation be possible?
