CG appicable on purchased property and received property from inheritance?

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CG appicable on purchased property and received property from inheritance?

Hello, I purchased land property worth 35 Lac and in the same year I have received land property from inheritance(Fathers property) whose market worth is 50 Lac. Then both property are consider under capital gain?

Profile photo of Amol Asked By: Amol 1 replies 1 helpful answers Last Updated: 9 months, 1 week ago
  • Profile photo of AmolAmol
    Participant

    Hello, I purchased land property worth 35 Lac and in the same year I have received land property from inheritance(Fathers property) whose market worth is 50 Lac. Then both property are consider under capital gain?

  • Profile photo of Chetan ChandakChetan Chandak
    Moderator

    Capital gain will arise only when you sell any of these property. Both these property will be treated separately.

    For property purchased by you cost of acquisition will be price you paid for the property and date of acquisition will be the date on which you purchased it.
    For property inherited by you cost of acquisition will be price your father paid for the property and date of acquisition will be the date on which your father purchased it.

    In general property is treated as long term if you hold it for more than 3 years (reduced to 2 years as from F.Y. 2017-18) from the date of purchase and short term in other cases.

    Capital gain will be calculated by by deducting below amounts from the sells proceeds:
    1. Cost/Indexed cost of acquisition
    2. Cost of Improvement
    3. Selling expenses.

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