Capital Gains - Inherited property

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  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.

    Thanks
     
  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.
     
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