Period of Holding for Ancestral Property

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  1. Prasadrani

    Prasadrani New Member

    A plot with 3 flats was acquired under inheritance by daughter from her mother in India. The plot was purchased in 1977 by her mother. This was fully financed by her daughter. Her "Will" in favour of daughter was signed in 1998, however her mother died in May 2008 and the "Will" was probated in April 2011 in fvaour of her duaghter. After that, four flats were developed in Nov 2014. Three of them (newly built flats) are sold. Now, the question is : does she need to caluclate the capital gain based on the short-term/long-term basis for the AY 2015-16 ?

    Any suggestion /answer to this question would be highly appreciated.
     
  2. Manoj Mehra

    Manoj Mehra Active Member

    In case of gift of property, the period of holding of the previous owner is also considered.

    Therefore, it is a long term capital asset as the property has been held for more than 3 years and the gains arising would be long term capital gains.
     
  3. Prasadrani

    Prasadrani New Member

    Dear Manoj ji, Thank you very much for valuable and clear advice.
     
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