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SUPRIYA KABRA (Asst Manager)     17 January 2012

Capital gain tax

my father in law and brother in law jointly own a house in ahmedabad. the property was purchased by means of a loan that will be repaid back by March 2012. now since our whole family has shifted to mumbai, we plan to purchase a new house here in the name of my husband and myself. but first we want to sell the ahmedabad property.

i wish to understand capital gain tax implications on such transaction. how much CGT will be applicable? secondly is it possible to transfer the ahmedabad property first in our (myself and my husband's) name and then sell it?

please guide me through the process.


 9 Replies

Sanjeev (Lawyer)     17 January 2012

The amount of capital gain is calculated by subtracting the indexed cost of aquisation from the sale value. The amount of Capital gain can be invested in purchasing a new house so that would be not taxed.

The question here would arise that the capital gain would be incurred by your FIL and BIL and the investment in your name would not be a eligible investment to claim deduction so either you transfer the property in your name before selling or the new property would need to be in your BIL and FIL names.

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SUPRIYA KABRA (Asst Manager)     17 January 2012

my brother in law is a CA. he said transfer of property in our names would not be possible and that we will have to pay capital gain tax. is it right?

A V Vishal (Advocate)     17 January 2012


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SUPRIYA KABRA (Asst Manager)     17 January 2012

but can my brother in law and father in law transfer the property in our names?

Sanjeev (Lawyer)     17 January 2012

first calculate the capital gain amount multiply the cost of house by 785 and divide by 463 as this will be indexed cost of aquisation. Now subtract this amount from the sale value you will get the capital gain amount that need to be invested in approved schemes to save tax.



2002-2003 447 21=4.929% 6.573%
2003-2004 463 16=3.579% 4.773%
2004-2005 480 17=3.6717% 4.896%
2005-2006 497 17=3.5416% 4.7222%
2006-2007 519 22=4.4265% 5.902%
2007-2008 551 32=6.1657% 8.221%
2008-2009 582 31=5.6213% 7.501%
2009-2010 632 50=8.591% 11.455%
2010-2011 711 79=12.36% 16.485%
2011-12 785 74=10.44% 13.8772%
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Sanjeev (Lawyer)     17 January 2012

tax liability is 20 percent on the amount so calculated.

If your BIL wants to save this he need to invest this amount in some approved schemes else y

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A V Vishal (Advocate)     17 January 2012

Yes they can transfer the property on your name by way of gift deed duly registered

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akash kapoor (*************)     17 January 2012


V R SHROFF (Sr. ADVOCATE Bombay High Court Mob: 9892432152)     18 January 2012

Thanks Supriya, you requested me, but Sorry, TAXATION IS  NOT MY SUBJECT

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