Amount of residential inherited property sold given equally to three

Hi

Capital Gains shall have to be calculated for all the heirs of the property for which value as on 1.4.01 shall be considered as the cost of acquisition which shall be indexed.

1. If the amount is not invested in bonds or a house property, long term capital gain tax shall have to be paid.

2. The buyer shall deduct TDS for all those persons to whom payment has been made. They can then claim refund of the TDS at the time of return filing, if applicable.

3. Contact a registered valuer locally.

Dear Sir,

1) Long term capital gain will be calculated in the hands of all the three sellers. To save tax, either invest in bonds or house property.

2) Purchaser needs to deduct TDS @1% if the sale consideration exceeds Rs. 50 lacs even though the amount received by the three sellers is less than Rs. 50 lacs. Purchaser needs to file three Form 26QB and issue three Form 16B TDS certficates.

3) Please contact government approved and registered valuer.

Hi,

1. Yeah, the long term capital gain taxation will arise on the sale transaction of inherited property.

2. The TDS paid by the purchaser shall reflect on seller's PAN as taxes deducted in Form 26AS. The same can be claimed as tax credit at the time of computing final tax liability.

3. I can help you with the valuation of the property.

Thanks

Damini

Hi,

Please find below thw response to your queries:

1.Long term capital gain will be calculated in the hands of all the 3 sellers based on the indexed cost of the FMV as computed on 01.04.2001.

2. TDS benefit can be taken by the seller in whose name the TDS has been deducted. If there are 3 sellers, all of them can avail benefit to the extent of the deduction under their PAN's.

3. You can hire a government approved valuer for this purpose.

Hope that clarifies.

Regards,

Nikhil.

Hi Asoka,

1. All the three sellers have to pay capital gain taxes. Whosoever is investing in REC bonds within 6 months from the date of sale, will be eligible for exemption from capital gain taxes.

2. It depends upon in whose name the buyer has deposited the TDS. Ideally, buyer should have deposited the TDS in the name of all the three sellers. If he has done so, all the three of you can take advantage of TDS of your share.

3. You can contact any government approved valuer.

1.As you 3 person share the property ,so all taxes can be shared by 3 in propotion of property holding.

2.All can take the advantage in proportion you hold the property.

3.Person residing at Bangalore can wel guide on these.Even you can take the information from internet.

Dear Sir,

Firstly, As per the Income Tax Law, In case you are selling any Property. you will be taxes @ 20% of the Gains (Sale consideration - Indexed Cost of Acquisitions). You can save your taxes if you invest your Capital gains into another House Property within 2 years or into REC/NHAI Bonds etc within 6 months of sale. Otherwise the Capital gains will be taxable @ 20% and will be paid by the Seller.

Secondly, The TDS deducted by the Purchaser will give you benefit at the time of your Return filing i.e you can take its credit from your Taxes payable in Income Tax Return.

Lastly, For Indexed cost of Acquisition, you have to contact any local valuer for Valuation as on 2001.

Thanks,

CA Sourabh Pahuja

1. All the three are liable to pay Capital Gain Tax

2. TDS credit is available to the PAN as per Form 26QB filed by the Purchaser. Check respective Form 26AS

3. Contact any Registered Valuer. If you are unable to contact any Registered Valuer, then take Circle Rate as on 1-Apr-2001 from the Registrar Office

1. That can be calculated after getting the details of purchase costs and sale price

2. TDS will be deducted under PAN of all the three owners, and hence they can claim it in their individual return.