Tax implication of sale of ancestral property

POSTED BY Sharan ON April 29, 2012 10:50 pm ONE COMMENT

Hello everybody,

My father has sold some ancestral land worth 6.5 L (passed on to him by inheritance). He wants to give that money to me as I am in the process of buying an apartment here in Bangalore.
In what ways can he pass that money to me?
What will be the tax implications for him and me?
My father is 67 yrs old, falls under 3.5L annual income bracket and he has sold this land at guidance value (value of property determined by the govt.). My yearly income is >10L.

Will there be any LTCapital gain tax for him? I guess not.
Pls. suggest.

Thanks

One reply on this article “Tax implication of sale of ancestral property”

  1. Dear Sharan, there is a LTCG Tax liability on your father for the sell of land. Regarding the income of your father is it 2.5L or 3.5L. @ 67Y age, he is Sr. Citizen so zero tax slab for him is 2.5L Rs.

    As it was an ancestral land, can you notify the purchase date & the purchase amount. In case the land was in the family, even before 1st April 1981, please contact a govt. approved valuer to provide the value of the land on 1st april 1981.

    Please clarify the above points.

    Thanks

    Ashal

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