CGT on the sale of house

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    Hello sir/mam,

    My grandfather purchased a land 35 x 60 feet and made a house on it in year 1947.

    He died without creating any will in year 1988.

    The reaming peoples in the house were his wife, and 2 sons which were the 3 legal heirs of house.

    In year 2010 relinquishment deed were made and signed to transfer the house to the name of the mother (his wife).

    In year 2011 mother (his wife) make a will separating area of the house into two half ( 17.5 x 60 feet each ) to both of his sons.

    In year 2012 mother died.

    In year 2013 both the sons goes with the mutation process to make their area ( as per will) in their names.

    Now the questions are:-

    Q1 If any of the son sell his portion now in year 2016 and want to pay the capital gain tax of the money get by selling his portion then as per lawwhich year from the above is consider as the purchase year of the house while calculating CGT?

    Q2 If his portion sells in 60 lacks and he will purchase 3 house from that, 20 lacks each then do he have to pay CGT on 40 lacks ( the cost of 2nd and 3rd house) or not.

    Waiting for the reply


  2. V K Khanna

    V K Khanna Active Member

    1. The year in which the property was inherited by the sons after the death of his mother I.e. 2012.

    2.Tax relief under S 54 can be claimed for investing LTCG in only one residential property.
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