capital gain on property received under will and sold

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    Dear friends,

    Please guide me on this issue:-

    A person had received an immovable property in FY 2014-15 under will and he sold it in the same year but till now not opened the separate bank account under capital gain scheme.
    Now in March 2016 before filling the return the person wants open a separate bank account under the capital gain scheme so that he will purchase another property with the proceeds in next 2 years.
    Will the person liable to pay capital gain tax or he will be exempt from CG tax liabillity if he open such account now.?
  2. Karan Batra

    Karan Batra Well-Known Member

    If you have already filed the return for FY 2014-15, then you cant open capital gains account and claim deduction
  3. V K Khanna

    V K Khanna Active Member

    The question whether the indexation benefits u/S 48 for sale of inherited property is admissible from the date of transfer of property to the legal heirs or from the date of purchase of such property by the previous owner, is under consideration of the Hon'ble Supreme Court.

    2. The Union of India (CBDT) has filed a Special Leave Petition against the judgement of the Bombay High Court in the matter of 'The Commissioner of Income Tax, Mumbai 12 vs Manjula J Shah reported in (2012) 249 CTR (Bom) 270. The Bombay High Court had decided the matter in favour of the assessee allowing him the indexation benefits in respect of transfer of the property received by the assessee through gift, from the date such property was purchased by the previous owner.

    3. In case the property inherited by the legal heir is sold by him in the same year in which it has inherited either by will or gift and whether such transaction would result in short term capital gains or long term capital gains, is also linked with the larger question of admissibility of indexation benefits u/S 48 pending before the Apex Court.

    4. I would advise @ CA PRAGYA CHOWKSEY to keep the aforesaid matter in view before deciding the issue.
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