Tax on sale of Property inherited by Brothers from Father

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  1. Kyrill Annand

    Kyrill Annand New Member

    Respected sir,
    We are three brothers. We inherited our house after the death of father in 1979 and are living in it with our family. Also we have a shop which we had purchased in 1995 for Rs. 5 lakhs. Now as we want to sell our shop and house what will be the tax i.e. income , TDS wealth tax or property tax we have to pay and how can we save the same.

    1. The house was alloted to our father in 1974-75 for about 70000 and we had to pay 20000 after his death. The building cost about 7 lakhs. Now it is been sold for 4 crores.

    2. The shop is been sold for 1.6 crores.

    We have decided to buy a shop and a house each with that money
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    The amount invested by you in the residential house can be claimed as an exemption from Capital Gains.

    On the amount, that has not been invested, you would be required to pay Capital Gains Tax @ 20%
     
  3. Kyrill Annand

    Kyrill Annand New Member

    Sir thanks for quick reply.
    What will be the condition if we buy a shop or agriculture land with the amount received.

    Thanks again
     
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