Dear Sir,
I have inherited an independent residential house from my house which was built in the year 1972. I am presently residing in the house and I have no other property anywhere in India or abroad. I wish to sell this house and purchase a new ready built flat. As the land was purchased long back, the purchase price was too low. However, as I could understand from your article, I will be getting only 2.72 as CII taking base year as 2001-02 resulting in very high LTCG. After offsetting the cost of new flat, which I am planning to purchase, it works out to around 50 lakh.
It may therefore be clarified that
(a) Whether my calculation for taking a factor of 2.72 as CII is correct?
(b) Whether the maturity amount received after investment in bonds specified in section 54 EC is also taxable?
(c) whether exemption under section 54 F would be applicable since I have read somewhere that it is not applicable for sale of house property
Regards
Mohit.
1 Answers
Dear Mohit,
In your case, the Year of acquisition by previous owner was 1972. So, the capital gains on sale of gifted property are treated as long term capital gains for you.
Yes, your indexed cost of acquisition is = *Fair market value / 100) * 272.
LTCG would have been even higher if the base year was 1981.
a - Yes.
b - Only interest is taxable.
c - Kindly read ;
https://www.relakhs.com/how-to-save-capital-gains-tax-on-sale-of-land-house-property/
https://www.relakhs.com/sale-gifted-property-capital-gains/
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