Ancestral property in my Father name which market value is 1cror .We are Mother and ,3 son. After conversation into residential we paid all charges to Nagarpalika. Questions- 1)is it Taxable??? 2) how much Tax? 3)How it becomes Tax free
Hi,
Hope you are doing well !
1.It is a inherited property from your father.
No Income Tax would be levied on the receipt of property in inheritance as Inheritance Tax is not applicable in India.
2.No tax as it's tax exempt in hands of the legal heirs.
3.It is exempted under Section 56(ii) of the IT act from the levy of any Income Tax.
Capital gain tax liability will be arise only when you sale it later.
Thanks & Regards,
Payal Chhajed
It will be taxable under income tax only when you will sell it further. Tax rate is 20%. Property obtained through inheritance is not taxable in the hands of legal heirs.
I understand that you all have inherited the property from your father. If this is the case ,then there is no tax leviable on inheritance of the property.
It is exempt under section 56 of the Act.
Capital gain tax will be liable when you sale the property.
Hi
Since it's an inherited property, there are no taxes applicable. It's tax exempt in hands of the legal heirs.
Capital gain tax shall be applicable when such inherited property is sold.
Hello Sir,
Property inherited from father is not taxable at the time of inheritance.
Tax liability will arise only after the sale of property. Once you sale the property then it will attract capital gain tax at the rate of 10%.
If you still have any doubt, feel free to ask.
Thanks & Regards
CA Divya Chugh
Hi,
Property inherited is not taxable. If you sell the same then you will be liable to pay capital gains tax.
Regards,
Nikhil.
I understand that a commercial property was inherited by your family (i.e. 3 brothers and mother) on death of your father. Such property was converted into residential premises by paying necessary charges to Nagarpalika.
Since share of such property was not explicitly mentioned by your father, a view could be taken that the 4 individuals (i.e. mother and 3 brothers) own 25% share each in the said property. When such property is acquired by an individual by way of inheritance, such a transfer is not regarded as a taxable transfer under the Income-tax Act, 1961. Accordingly, no tax would be payable by any of the 4 individuals on acquisition of share in the ancestral property by way of inheritance.
As and when such property is sold in future, the cost in the hands of the previous owner (i.e. your father) or the fair market value of the property as on 1 April 2001 (where the property has been inherited prior to 1 April 2001) whichever is higher, would be deemed to be the cost of the acquisition of the said property for the purpose of calculating the capital gains.
Dear Sir
As per Section 56 of IT Act,1961 . The property you inherent is not come under the scope of Capital Gain .Thus the property you received is not liable to any income tax
Thanks & Regards
There will not be any taxability in that transaction, taxability will arise once you will sale/transfer this property.
HI,
Receiving gifts or inheritance from your father is not taxable transaction . It's not taxable as long as you don't sell further.
Thanks
Damini
1) It is taxable only after sale of the Property
2) You need to pay Capital Gain Tax at 20% + 4% Cess after the sale of the property
3) It will become tax free if you invest in specified investments as per the conditions prescribed therein
