capital gain
10 months ago
my grandfather received a land form refugee relief rehabilitation department west bengal . after his demise i sold this land for 35 lacs. do i need to pay capital gain tax on it???!!!
A.Dear Client,
A land gifted by the Govt. of WB to a refugee under the Refugee Relief & Rehabilitation Scheme to your grandfather, it got a locking period of 10 years from alienation/transfer of title to anybody. If the said immovable property left intestate by your grandfather then surviving family members/legal heirs become entitled to an equal share in the said property. Thus, the share of your father devolves upon you as an ancestral property which is also shared by all the legal heirs equally, and without the consent of other legal heirs, the said property cannot be disposed of. When being satisfied with the status of the said property, Buyer has bought the same, and you earned a substantial amount of capital gain from the high-value transaction, you are liable to pay Income Tax either on long-term capital gain or short-term capital gain on the market value or set forth the value of the immovable property whichever is higher. So, you may consult a CA for further information in respect of your tax liability.
A land gifted by the Govt. of WB to a refugee under the Refugee Relief & Rehabilitation Scheme to your grandfather, it got a locking period of 10 years from alienation/transfer of title to anybody. If the said immovable property left intestate by your grandfather then surviving family members/legal heirs become entitled to an equal share in the said property. Thus, the share of your father devolves upon you as an ancestral property which is also shared by all the legal heirs equally, and without the consent of other legal heirs, the said property cannot be disposed of. When being satisfied with the status of the said property, Buyer has bought the same, and you earned a substantial amount of capital gain from the high-value transaction, you are liable to pay Income Tax either on long-term capital gain or short-term capital gain on the market value or set forth the value of the immovable property whichever is higher. So, you may consult a CA for further information in respect of your tax liability.
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A.Dear client,
Yes, you will have to pay the tax.
The answer to your question depends on if it is a short term or a long term capital gain.
Capital gains tax on Short term gains is unavoidable and no exemptions are available to minimize your tax liability. However, you can claim deductions to lower the tax liability on long-term gains.
But in case of long term capital gain, you can use the entire Long Term Capital Gain proceeds on sale of a residential house to buy another house property (residential property) to save Capital Gains tax.
Yes, you will have to pay the tax.
The answer to your question depends on if it is a short term or a long term capital gain.
Capital gains tax on Short term gains is unavoidable and no exemptions are available to minimize your tax liability. However, you can claim deductions to lower the tax liability on long-term gains.
But in case of long term capital gain, you can use the entire Long Term Capital Gain proceeds on sale of a residential house to buy another house property (residential property) to save Capital Gains tax.
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