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Showing posts from June, 2008

Income tax 2008-09

Non Resident Indian

How to Compute Capital Gains On Inherited Property?

Computation of Capital Gains on inherited property. My husband purchased a site from the development authority in the year 1970 and constructed a house thereon. We have been living in the house since then. My husband expired in Jan 2004 and the property devolved on me(his wife) in terms of his will. I have disposed off the property in May 2006. I request you to please advice me about the computation of capital gains. I) Would I get the benefit of indexation from 01/04/1981 or from Jan 2004.
You will be happy to note that in case like yours, where the capital asset becomes somebody else property on account of death, the treatment under I T Act is same as would have been applicable in case original owner, had he lived at the time of sale. Section 49(1) of the I T Act makes it amply clear. You become the owner of the property by mode specified in section 49(1), hence as per section 55(2)(b)(ii) ,cost to your husband shall be cost of the p…