Me and 4 siblings inherited a property from our father in Muzaffarpur, Bihar, which was sold recently and the money was distributed equally. As the property was bought by our father in 1965, I am not clear on how to calculate capital gains for my share.
Dear Sir,
You have to take the fair market value of the property as on 1 April 2001. That fair market value will be considered as your purchase price and accordingly you have to calculate capital gain by deducting fair market value from the sale price.
Your capital gain would be 1/4 of the total capital gain.
Please feel free to call/ revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Now how to get this fair market price. Do you think , the registry office would have mentioned it during registration while selling? Also do I need a documents certified by registry office clearly stating the fair price for the property in 2001?
Hi
Fair Market Value can be provided by the Registry Office, based on the ready reckoner values are per their record. If you can get a certificate from the registry, it will be preferable. If you case gets picked up for scrutiny assessment, then the certificate will be a proof supporting the FMV of the property.
Regards
CA Keerthiga Padmanabhan
M.Com., CA, LLB
Hello,
I doubt that the authorities would have stated the value as on 2001 in your documents but you can very well go and ask for a certificate stating the valuation as on 2001 to keep on record.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
In case you have sold property after March 2017 then you need to take value from registration office for the date 01-04-2001.
Sir if you can send details on modani005@gmail.com then we can give exact calculations.
