Capital Gains - Inherited property

Share This Thread
  1. shanthi viswanathan

    shanthi viswanathan New Member

    How does the recent capital gains rule apply to inherited property.
    For example, if there are 3 shareholders,

    1)Can all 3 of them invest in 3 different properties?
    2) Can one of them invest their share in property and other 2 in bonds?
    3) Can all 3 of them invest in bonds?

    Kindly let me know which of the above is allowed and the tax implication.

  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    Capital Gains Exemption is allowed in all the 3 cases as mentioned by you.

    The recent amendment has only disallowed Capital Gains Exemption in the following case:-

    3 partners - Mr. A, Mr.B, Mr.C

    Mr. A reinvested in Property 1 and Property 2
    Exemption will not be allowed for investment in Property 2

    The reinvestment done by Mr. B & Mr. C will not impact the exemption in the hands of Mr. A

    These are independent of each other.
Draft saved Draft deleted
Similar Threads Forum Date
Closure of Capital Gain Account by Mistake CA Sep 15, 2016
Can Pvt Co give Loan to Directors exceeding its Paid up Share Capital CA Feb 27, 2016
capital vs investment CA Dec 31, 2015
Capitalisation of backup software CA Jul 20, 2015
Accounting treatment of wrong capitalisation of asset. CA Feb 25, 2015