Capital Gain Tax in case of Inherited Property

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  1. V K Khanna

    V K Khanna Active Member

    " I have an ancestral property which my father bought in 1965 for Rs. 5000/-. After his death in 1977, the said property was transferred to my mother's name as per the will left by my father. My mother expired in 2010 and I became the rightful owner of the said property by means of a registered will left behind my mother. Since I own a residential property already which is self occupied, I intend to sell off the ancestral property for Rs 50 lakh. Pl advise how the capital gain in this case would be worked out and who are authorised to work out fair market value of the asset purchased before 1-4-1981 i.e. the date from which the indexation benefits were allowed by the Income tax Deptt. and finally whether the date of transfer of asset in my name will be reckoned from the date of death of my mother or when the property was originally purchased by my father in 1965."
     
  2. Parul_Gupta

    Parul_Gupta Active Member

    The date of transfer of asset will be considered from the date on which it was transferred in your name. The Cost Inflation Index of the year in which property was transferred in your name will be considered.
     
    V K Khanna likes this.
  3. V K Khanna

    V K Khanna Active Member

    Dear Akanshaji,
    Thanks for yr prompt reply. First part of my query remains unanswered. To calculate capital gain in this case, will I have to arrive at the fair market price of the property as on 1.4.1981 through approved Govt Valuer and then apply cost inflation index of 2010 when the property was transferred in my name. Please confirm.
     
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