Capital Gains Tax for senior citizens on sale of inherited property
3 months ago
Does a senior citizen (68 years) need to pay capital gains tax on the sale of inherited property (sold within two years of court-mandated partition) if their income has been less than Rs. 3 Lacs in the last four years?
If no, then how does one claim the exemption? Do we need to prepare any documents or get a certification from a CA?
Are there any other tax liabilities / regulatory payments that one should consider during the mutation and sale process of the inherited property?
A.Dear client,
A senior citizen who is above 60 is exempted with an annual income of Rs 3 lakh or those aged 80 years or older with a yearly income of Rs 5 lakh will not be subject to capital gains tax as per the Income Tax Act, 1961. When you receive an inherited property, you will not be liable to pay tax. First of all, an individual inheriting property from their ancestors is not subject to taxes at the time of inheritance. There is now no tax on that. The tax liability of the sold-out ancestral property depends on the capital gains and its norms.
When the property is held for a period of more than 24 months from the date of acquisition, the gains from the property will be termed long-term capital gains. (LTCG). This capital gain is taxed at 20.8% (including cess) with indexation. You can claim capital gain exemption through Section 54 of IT act.
Thank you
A senior citizen who is above 60 is exempted with an annual income of Rs 3 lakh or those aged 80 years or older with a yearly income of Rs 5 lakh will not be subject to capital gains tax as per the Income Tax Act, 1961. When you receive an inherited property, you will not be liable to pay tax. First of all, an individual inheriting property from their ancestors is not subject to taxes at the time of inheritance. There is now no tax on that. The tax liability of the sold-out ancestral property depends on the capital gains and its norms.
When the property is held for a period of more than 24 months from the date of acquisition, the gains from the property will be termed long-term capital gains. (LTCG). This capital gain is taxed at 20.8% (including cess) with indexation. You can claim capital gain exemption through Section 54 of IT act.
Thank you
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