what % of capital gains tax is applicable for ancestrial property and if there is a non-taxable limit?



Need to know as what % of Tax is applicable on money received from ancestrial property sale

what % of capital gains tax is applicable for ancestrial property and if there is a non-taxable limit?
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6 Replies to “what % of capital gains tax is applicable for ancestrial property and if there is a non-taxable limit?”

  1. about 20-36% it depends on the year that you bought it, how much profit did u make, if it was an inheritance, etc. only an accounted can tell you this may sure is a cpa, not even a lawyer knows trust me.



  2. CGT and Inheritance tax are 2 different entities and the rate(s) at which they are determined vary from one country to another as will be the exemption threshold for inheritance tax.

    Normally,Inheritance tax is payable on the estate and paid to the government of the country in which the deceased resided or in which the estate was left.The tax free threshold is then deducted from the value of the estate and then the current percentage applied to the balance -should there be one
    CGT is a different tax altogether and is payable on the capital appreciation made from the sale/ disposal of an asset (usually your home is exempt).Again different rates apply from one country to another as do limiting factors in respect of how long the asset has been held prior to disposal.
    Normally the sale of an inherited asset should not incur both taxes since the inheritance tax will have been paid on probate valuation which should be close to current market/sales value anyway.
    You should be able to determine what is payable by contacting the relevant tax authority in the country where the asset is located because either tax is payable there and not in your country of residence if that is different.


  3. LTCG is the diff. between the sale price and the aquisition price. Cost price may be borne by anyone. Tax is payable by the person who actually incurs the gain.

    Computation of Long-term Capital Gain
    1. Take the full value of consideration (full sale price without any deductions),
    2. Deduct
    •Expenses incurred for the transfer,
    •Indexed cost of acquisition, and
    •Indexed cost of improvement.
    3. Deduct exemptions under sections 54, 54B, 54D, 54EC, 54ED, 54F and 54G.

    Income Tax Rate on Long Term Capital Gains (section 112)
    * Long term capital gain is taxable at a flat rate of 20%.

    Long Term Capital Gain from the Transfer of Residential House Property (Section 54)
    The exemption under the Section 54 is available only an individual or a HUF who transfers (or sells) a residential house/property that results in a long-term capital gain, and then invests the amount of gain in acquiring a new residential house. This exemption is available subject to fulfillment of the following requirements:
    (i) The transferor shall be an individual or the HUF,
    (ii) The asset to be transferred must be of long-term capital asset, being buildings or lands appurtenant thereto, being a residential house,
    (iii) The income from such residential house shall be assessable under the head “Income from House Property”,
    (iv) The transferor assessee should purchase or a residential house in India within a period of one year before or two years from the date of transfer or construct a residential house within three years from the date of the transfer of the original house. (Construction must be completed within these 3 years.), and
    (v) The new house property purchased or constructed has not been transferred within a period of three years from the date of purchase or construction.

    Amount of Exemption. The amount of exemption under section 54 is
    •Equal to the amount of the capital gain if cost of new house property is more than the capital gain, or
    •Equal to the cost of the new house property if the cost is less than the capital gain.



  4. DEAR SIR
    IF I PURCHASES PROPERTY @ 3000 PER SQ. MTR AND AS PER GOVERNMENT RECORD RATE IS 5000 PER SQ. MTR SO IS THIS CONSIDER AS A CAPITAL GAIN AND I HAVE TO PAY CAPITAL GAIN TAX PLEASE ADVICE ME.

    THANKS
    RAYEES





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