Capital gains Calculation on Sale of Ancestral property

Q & A ForumCategory: Real EstateCapital gains Calculation on Sale of Ancestral property
Nankun asked 3 years ago
Hi I have inherited a property from my mother. My grandfather purchased a plot of land and gave promoter to build an apartment, in exchange he gave us 2 flats. One I have inherited. The other one my cousin. Now I plan to sell my flat. How will be the capital gains calculated. The plot was purchased in 1960s, the apartment was built in 1990s. Please help. Also how will the base FMV be calculated in this case. Thanks.
1 Answers
Sreekanth Staff answered 3 years ago
Hi, Whenever certain assets are sold and particularly when such assets have been received by way of gift or through Will or by succession or by inheritance, then the cost of acquisition of the asset will be deemed to be the cost for which the previous owner of the property acquired it, as increased by the Cost Inflation Index of that year in which the previous owner originally acquired the property. Kindly read : For exact calculations, kindly consult a CA in this regard!
Manikrishna replied 3 years ago

In the above case if we inherited ( in yr 1995) a house which was demolished to build flats( 2021). In the cost calculation will you still add the cost of the old house( indexed) plus the cost of building the flats? Also, will be long term or short term gain if we sell the flats now?

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