Capital gain out of ancestral property

Hi

If the ancestral property was a land, exemption shall be available under section 54F. If it was a house property and not just a land, exemption shall be available under section 54.

For capital gain calculation, FMV as on 1.4.01 shall be considered as cost of acquisition which shall be indexed. (Considering the property was purchased by your ancestors before 2001).

Yes you can get capital gain exemption u/s 54F provided you have only 1 property in your name before that.

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Thank you

Hi,

Hope you are doing well !!

Yes, you can avail tax exemption in section 54F provided you should not own more than one residential house at the time of sale of the original asset..

Hi,

- To avail exemption u/s 54F, either you need to purchase within one year before the date of transfer or 2 years from  the date of transfer or construct within 3 years from the date of transfer. 

- You need to invest sale consideration to avail the exemption of LTCG.

- Obtain the report of valuer as on 01.04.2001 to arrive at the FMV of the property. 

- Deposit the amount in capital gain scheme amount if not utilized before the filing of ITR.

Thanks

Hi

When an individual sells a residential property and buys another residential property, he will be eligible for exemption under Section 54 and if sold asset is long term capital Asset (not residential house) then exemption under sec 54F will be available.

So in your case if ancestral property is land then yes 54F is available.

Hope it helps