Income Tax on Sale of property on Father's Death

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  1. Souborna

    Souborna New Member

    Is Sale of Land received on Death of My Father Taxable????
     
  2. Karan Batra

    Karan Batra Well-Known Member

    If on the death of the father, the land is being transferred to his children/spouse, it wont be taxable.

    When his children/spouse sell this land, it would be taxable..
     
  3. johnsmitchals

    johnsmitchals New Member

    First of all, The information which you shared is really helpful to get the clarity in these situations. According to the tax act, Various changes are incurred. Based upon the state rules, We have to decide for the eligible criticism of tax payable or not.
     
  4. Harish Ragav

    Harish Ragav New Member

    @John....
    for direct tax nothing can be done with the state rules.... and agree with karan...

    If any asset of a deceased person is transferred directly to the estate of the deceased person, the deceased estate is treated as having acquired the asset from the deceased person at a cost equal to market value of the asset at the date of death of the deceased person. This amount is treated as the base cost of the asset the estate incurred.


    The capital gain or loss is calculated as follows:

    Proceeds: Market value
    Less base cost: (Base cost as calculated)
    = Capital gain/loss XXX 

    If the estates/executor disposes of the asset to an heir, the estate will be treated as having disposed of the asset for proceeds equal to its base cost (that is the market value on the date of death.

    The capital gain or loss is calculated as follows:

    Proceeds: Market value
    Less base cost: Market value
    = Capital gain/loss 0

    No capital gain or loss will arise on the disposal of the assets by the estate to an heir. Capital gain or loss will only arise when the heir disposes of the asset at a later stage.

    Heir
    If an asset of a deceased person is transferred to an heir of the deceased person, the heir is treated as having acquired the asset from the deceased at a cost equal to the market value of the asset at the date of death of the deceased person.

    correct me if i am wrong.
    Regards
    Harish Ragav
     
  5. jevananurag

    jevananurag New Member

    I heard too many of them are getting the income through sale of property. What are the possibilities to get income through this process?
     
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