Got income tax notice for income from sale of property which was on Grandfather name ?

POSTED BY Sankar ON March 22, 2014 8:24 am COMMENTS (2)

Hi I Have sold my grandfather property in 2011 & credited that 10 lakhs in my savings account. I got a letter from IT to show returns.

If have to pay any tax how much i have to pay, please suggest me regarding this?

2 replies on this article “Got income tax notice for income from sale of property which was on Grandfather name ?”

  1. ashalanshu says:

    Dear Sankar, was your father alive at the time of property sell out or you sold it in his absence? Please clarify.

    Thanks

    Ashal

  2. curiousraj says:

    I think income from selling of ancestral property is not taxable. But in case it is not clear whether you transferred money from your grand father’s bank account or transferred from third party(purchaser). If money transfer is from 3rd party to your account then it is taxable as per the tax slab. If as per your constant income you are in tax slab of 30% then 3.33 lac need to be paid as tax.

    Income tax slabs 2011-2012 for General tax payers
    Yearly Income Tax Rate
    Rs. 0 to 1,80,000 No Tax (0 %)
    Rs. 1,80,001 to 5,00,000 10%
    Rs. 5,00,001 to 8,00,000 20%
    Above Rs. 8,00,000 30%

    As specified above you need to pay accordingly. You need to add your annual income for that year + 10 lac and then calculate tax accordingly.
    But I would again suggest to hire a tax consultant if there is any way to proove that income was from inherited property then you can save tax completely for this 10 lac.

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