Capital Gain Tax on Sale of Inherited Property|How to Calculate FMV of Property as on 2001|Taxpundit
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- Опубликовано: 7 сен 2024
- A capital gain may either be short term, or long term, depending on the period for which the asset was held. If the inherited house is held for more than 24 months, it is treated as a long term asset. This period of 24 months includes not only the period for which you held the house, but also the period for which it was held by the previous owner/s who had paid for it.
For a holding period of less than 24 months, the actual cost of acquisition and any cost of improvement are deducted and the balance amount is treated as short term gains and taxed at the slab rate applicable to you. If the combined holding period exceeds 24 months, you get the right to deduct the cost of acquisition and the cost of improvement as enhanced by the cost inflation index multiplier. The cost of acquisition will be the amount paid by any of the previous owners, towards the purchase of the house.
In case the house was inherited before 1st April 2001, you may substitute the fair market value of the property as on 1st April 2001 for the ‘cost of acquisition’ and apply the cost inflation index multiplier on that value.
For a long-term asset, you have two options to save taxes. You can either invest the capital gains on the purchase of one house within two years or construct one house within three years. Alternatively and/or additionally, you can invest the capital gains of up to Rs 50 lakhs in bonds of NHAI or REC, within six months of its accrual.
Currently, the LTCG on the sale of a property is fixed at 20%. STCG is calculated as per the marginal income tax slab of the inheritor and can be up to 30%.
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ਸਾਹਿਬ ਸ਼੍ਰੀ ਜੀ ਇਹ ਬਹੁਤ ਹੀ ਸ਼ਾਨਦਾਰ ਅਤੇ ਸ਼ਲਾਘਾਯੋਗ ਵੀਡੀਓ ਏ,ਜਿਸ ਵਿੱਚ ਆਪ ਜੀ ਨੇ ਬਹੁਤ ਹੀ ਸੁੰਦਰ ਤਰੀਕੇ ਦੀ ਭਾਸ਼ਾ ਨਾਲ ਸਮਝਾਉਣ ਦਾ ਯਤਨ ਕੀਤਾ ਐ। ਬਹੁਤ ਬਹੁਤ ਧੰਨਵਾਦ ਆਪ ਜੀ ਦਾ❤
आप बहोत खुले दिल के आदमी है 🎉🎉
Very nicely explained,
in short , simple & sweet language.
Thanks
Thnx sir,your videos r really good and accurate.Keep doing this good work,it's a kind of social service.
Thanks for the kind words. Keep watching our videos.
@@TaxPundit by by
Excellent! Clear explanation with all important details.
Thanks for your kind words
Thank you so much.. you ate the best.
This is one of the best explanation on Capital gain tax calculation in youtube.
Keep up the good work sir.
बहुत बहुत धन्यवाद सिर इतना बढ़िया तरीके से बताने के लिए
Clear thinking, clear explanations, good
Well explained. But you have not given the calculated income tax amount to be paid on capital gain for the examples you told. It's incomplete. Pls clarify one example where the property was purchased in 1998..
Bahut sunder tarike se apne smghaya hai. Dhanyawad Sir ji
VERY USEFUL INFORMATION , THANKS. KINDLY MAKE A VIDEO FOR Capital Gain Tax on Sale of Inherited Property IN AY 2024-25🙂🙏
Thanks for video & good explanation. It's good attempt to educate people. I had wrong notion that cost of property inherited Will be zero.
In case property is very old & in village , please explain what's documents required for income tax . Or to prove ownership .
Sir you gave detailed explanation.....very useful thank you so much😊❤
Sir ji, very good information. Sir if the inherited property (inherited 15 years ago from today) is sold last month at 100/- and from this received 100/- one buys a new property of 25/- within 2 years for example; what are the Tax implications?
I liked it so much that I immediately liked and subscribed.
Thanks for sharing this nice video . You have explained everything so clearly for inherited property.
My question is regarding a property purchased by me in 1997 and which I want to sell now.
1. I understand that the cost of acquisition will be calculated similarly by finding the FMV on 01/4/2001.
2. Capital gains will also be calculated similarly, as told by you in this video.
Please clarify
Thanks
good explanation and clarification, but had it been in English it would have been still excellent
Thanks for the kind words. All videos have slides and description which is in english and should help understand what is being said. Please share video in your social networks.
Thanks for valuable information, really I needed it.
very good video. i got my doubts clarified. nicely put by you. Many thanks.
Very useful & informative video. Sir, I wish to know how to fill ITR 2 online if a residential house owned by 4 four persons equal share and sale to 2 persons equal share details as under
FMV 1.4.2001 40 L
Indexed COA 135 L
FVC 295 L
LTCG 160 L
LTCG for every Owner 40 L
Investment as under to claim full exemption as under
1. Residential house 1st 25 L
2. Residential house 2nd 10 L
3. Tax saving bonds REC 5 L
Total investment 40 L within time limit
Video is very easy to understand and informative.
Sir your videos are very very valuable .please keep continue .Thanx
Brilliant - answered all important questions in mind.
Sir, ek inherited property hai.100 Saal Purana.. jiska owner avi me hu..Mera pass documents hai..but documents me mention nhi hai, my great grandfather kitne me purchase kiye the...index kaise calculate Kr Sakta hu
Excellent guidance.Thanks a lot sir.Pl keep it up for new techiniques.
When we sell plot of land,purchased before the year 2000,in income tax capital gain is calculated taking the circle rate of that plot for the year 2001 and multiplying it with index price for the year of sale divided by 100 to get acquisition cost. Then the indexed acquisition cost will be deducted from fair sell value of the property to find out capital gain. Now question arises, where shall I get the actual circle rate of the plot for the year 2001? Is there any government approved table of circle rate yearwise, wherfrom I can get the actual circle rate of that particular plot for the year 2001? Please help me.
Thank you sir very well explained. I have one query glad you if reply. Residential Property was purchased by grandfather. After his death it got transferred to his son. After his sons death it was got transferred to his son. Please note no any will was made. Everything was mentioned in memorandam of transfer of shares. Property is now sold by last son. Please let us know do we have to take the amount of purchase incurred by grandfather as cost of acquisition and should we treat this as LTGC. property was acquired by in 1986. Sold in 2022.
Nice information...but registered valuer will depend on sales instances only for valuation.
Sir,
Which value to consider for calculating LTCG under section-54 , arises by sale of resid.property.
1) If circle rate/property value for stamp duty "is more than" consideration value (sale deed value)
in FY2015-16.
So, which value to consider as purchase value??
Thanks,
When I finally find a vid that contains what I need to learn, but it is not in English!....gotta keep searching
इतनी महत्वपूर्ण जानकारी के लिए बहुत बहुत धन्यवाद 🙏
सर एक प्रश्न का समाधान चाहता हूं.. क्या हाउस प्रॉपर्टी की सेल से हुए LTCG को बेटे के लिऐ हाउस प्रॉपर्टी खरीदने में इन्वेस्ट करके LTCG टैक्स exemption क्लेम कर सकते हैं..? 🙏
Thank you Sir for your fantastic explaination 🙏🙏
Sir, thank you, your video was v informative...God bless you...🙏
Sir very good and informative video. Can I show cost of acquisition of inherited property as zero and pay 20 percent tax on entire sale consultation.
Conversion Charges for converting leased to freehold& Fee paid for liasioning is d/d
Suggestion made a video on a property sold plot commercial and i bought a residential plot for the entire amount. Is property tax the zero inheritance? what period/ years i should not sell to avoid property gain tax exempted in resi investment
Explained very lucidly. thank you.
Good lecture. Knowledgeable
How to calculate LTCG on Inherited Property if cost of acquisition is not known. I have 80 years old house inherited from my grand father, House is on prime location and was built in 1947. We have done renovation of the same 4 times but bills of the same are not available. How to calculate LTCG on the same.?
Sir, my father purchased land in 1969 at a cost of Rs 2000. Then constructed house in 1973. In 2014 he written a will for 3 sons equal division. In 2015 very sad he died in 2015. We 3 brothers then divided in 3 equal part as per will and make in own name part wise from nagar nigam. Got separate house number. Now all three wants to sale...Or one person...Cost of one parte getting 60 Lac. And all 3 parts 1.8 Cr. Plz tell is this capital gain or how much we have to pay. In 2001 market value suppose 10 L...Then capital gail tax kya hoga sur kaise save karen.
Very clear and concise
Thanks very good sir very clear explanation
How to calculate the property of constructed area if that property has 2500 square feet or 232.34 square metres how to calculate the value of construction on 2001
Very knowledgeable thanks
Very nicely ...clearly explained...very usefull
Very nice and helpful video..
Pls also make videos like this regarding other ancestral gains.. Like KVP MIS RD..how are they calculated?
Thanks for appreciation and suggestion. Keep visiting our channel for more videos.
Ancestral property ke agar 5 legal heirs h aur hum ek ke naam kardete h toh tax kese show karege?
Thanks a lot for your valued guidance.
Please guide , if the father has Nominated the property in name of one of the 4 sons..How can the sale of the property be accounted for. if it is to be distributed equally amongst all the four heirs.
My father left a flat without any will. This flat was purchased by my father in 25.8.86. We are 3 siblings of my father. By a court order the flat was divided equally amongst us. After that my brother and sister gifted that flat to me through a gift deed dt.23.2.2018, as per the verbal wishes of our late father. At that stage on 9.10.2017 I got the flat valued at rs.51 lakhs .
I did improvement on that flat by changing the location of bathrooms, kitchen, creating new store and handwashing area and totally new wiring, flooring, pop work for ceiling, 4 ACs , grills and painting of areas that were newly created.
My question is what all items can I include for the capital gains Tax in the improvement of the apartment which I intend to sell. Kindly reply
Pl make video on how to calculate Long Term Capital Gain & Short Term Capital Gain for buying Shares from stock market & how to show in form No.16 & under what section?
This video may help :
ruclips.net/video/SPM4M1CZlqQ/видео.html
I think wef 1/4/2020, the value as per thr valuation report by a registered valuer cannot exceed the circle rate
Thank you sir for wonderful knowledge.my question is : How to find? My land is an agricultural or not,how to find? My land in municipal condoment area or not.
Very informative and detailed
Thanks. Stay tuned.
If a plot is agri on 1.4.2001 and becomes residential after few years than how to calculate
three way to know the face value illustrated nicely
Thanks sir 🙏for giving your valuable time, please answer whether the FMV valued on 1.04.2001 can be higher than the stamp duty value mentioned in the sales deed (Current sales deed)
please give exemple of resale of properties
Thanks for a very informative video. Kindly tell how to calculate the value of a property which is constructed by me on the land purchased by me.
Very nice, informative
Excellent information
Can anyone tell the answer please!!
Mr. C inherited from his father 8 plots of land in 2000. His father had purchased the plots in 1996 for Rs.5 lakhs. The fair market value
of the plots as on 01.04.2001 was Rs.8 Lakhs. (Rs.1 Lakh for each plot)
On 11 June 2014, C started a business of dealer in plots and converted the 8 plots as stock in trade of his business. He recorded the
lots in his books and Rs.45 Lakhs being the fair market value on that date. In June 2018, C sold the 8 plots for Rs.50 Lakhs.
on the same year he acquired a residential house property for Rs.45 Lakhs. He invested an amount of Rs.5 Lakhs in construction of one one floor in his house in June 2019. The house was sold by him in July 2019 for Rs.63,50,000 The valuation adopted by the registration authorities for charge of stamp duty was Rs.86,50,000. As per the assessee's request the assessing officer made a reference to a valuation officer. The value determined by the valuation officer was Rs.87,20,000. Brokerage
of 1% of sale consideration was paid by C.
Give the tax computation for the relevant assessment years with reasoning.
If a person got property in 1984 by
a will by other person not related if legate sold it in the year 2024
Residential property is it necessary to pay capital gain
(April 2001) old ancestral property capital gain calculation
grandmother se mili property par capital gain kaise calculate hoga?
Thanks for good explanation how to work Capital gain. Canucks clarify in case husband invests full consideration for purchase of prperty and registers in joint names of himself& wife.. on death of wife the property devolves on her husband and their so.The father becomes owner of 75%and son25% owner.son relinquishes his 25% share in favour of father and father disposes off the proprty within 24 months from reluishmeng by son.pl clarify whether to the extent of 75% LTCGand to the extent 25% STCG apply? If so how the cost of acquisition to be computed for making Capital gain calculated. I will be thankful if you clarify please.
I came across this video and it opened by eyes. But sir, I have a query, my grand father bought the property in 1977, he made a will and accordingly my mother got the property but she too expired and now my sister and I have done a partion deed in this year ie 2021. Now we both are selling this property ( land in residential area) to a developer.
So how will be the tax calculated in such scenario.
Also we don't know the value during that time of the property.
Now, in 2021, how to know the value to which I need to sell it off , also then how to calculate .
Sir, how about the property is inherited by 3 generations?? How can you calculate cost of such property??
if more than two heirs then full value of consideration amount will also shown 50%????? in each case
Very very good explanation
Sir I have sold the residential plot of RS. 1000000 on 15 th March. This plot is in the name of me and my brother. Plo was purchased in the year 2020 of RS 100000. How to calculate capital gain and how to file in ITR.
Ancestral property could be held over 50 yrs ..how to calculate capital gains
Very nice and helpful
An old man with low income ( non-taxable) has sold inherited property in 2022 and his income has become taxable in FY 2022-23. Whether he will have to pay tax on slab rate or at 20% of LTCG due to property sale?
If none of my ancestors had ever purchased the land or paid any price for it to anybody, and the same was inherited by me on the death of my father, what will be the cost of acquisition of this property as per IT Act, 1961, if I sell it to someone ?
Valuable information. Thank you very much
Circle rate in 2001. for faridabad sec 45 not available. Pl help to circulate.
Sir circle rate kya hota hai ...kya uss pe bhi depend karta hai ki hamara capital gain kya hoga ..ya nai capital gain totally depends on total sale value minus the indexed cost ..their diff. Is capital gain.....doesn't matter whatever the circle rate whether less or more than indexed cost or sale cost ......capital gain has nothing to do with circle rate..please clear this point
sir, Its looking the formula for indexed cost of accquistion is different from the question you solved . I think the formula that is written is wrong but the question is done by correct formula
Thanks for the informative video. But how can we avoid capital gains tax on the inherited property . Can ee invest it on some land or building for exemption U/s 54 for inherited property. Pl clarify this aspect which is not covered under the above video. Tq.
Thanks Sir for good knowledge sharing.
Good explanation
Perfectly Delivered
Bahot sunder
Question : Where will I get Authentic list of registered Govt valuers for valuation of FMV ?
Excellent video Thank you sir
Date and acquisitions value not known then how to do ir
How to devide capital gain tax in brothers
thnks sir for the easy explanation!! you are doing a great job, i have a que: i have sold a inherited property in nov 2018 when & how will the tax be deducted?
Tax need not be deducted u/s 194-IA by the seller. It will be deducted by the buyer if consideration is more than 50 lakhs.
However, you will have to calculate capital gains and file your ITR now without any further delay. You can claim credit of TDS deducted by buyer u/s 194-IA. Hope it helps.
@@TaxPundit thankyou so much sir for the reply sir!! .. the property was purchased before 2001 and it was sold at 59lakhs in nov 2018... that means the.person who has purchased it from him the tax will ne deducted..sorry i didnt understand that part,, can you plz explain
Sir is there any website to calculate FMV or circle rate of property as on 1/4/2001 , i need it bcoz i have have purchased property in 1990
will stamp duty value be added to cost of acquisition?
Sir, suppose site/plot is purchased in 1965 for rs. 10000 and construction done in 1995 at 2 lakhs rupees , then cost of acquisition us Rs. 210000 or rs. 10000 or rs. 2 lakhs. I have inherited the property in 2016.
Pl clarify.
Thank you
Hari Narayana
Very nicely explained. Thanks
Best information sir
excellent explanation
My father buy a house property in 1996-97 on power of attorney and its got registered in 2004-05 .kindly confirm cost if index value will be applicable on 96-97 or 2004-05
Good information
Sir my father old house 1978, was valued by Bank's valuer in Feb 2000, is it a Valid for LTCG SOLD in 2024.
Pls allow me send copy. Thanks
I got a land in 2005 from my father . In the register deed dalil it is mention the land value is 240000 . Can i use that amount as fair market value to calculate capital gain tax. Please reply.
Very good video Sir, thank you
Welcome. Stay tuned for more videos.
What if the Inherited property is Commerical Property and that to, too old
My father died before so many years ago and we mutually distribute all my father's property and a shop came in my part and i sold out it in the same financial year so can i take the way of long term capital gain ?