What Are income tax implication on sale of inherited land? As for :- (1) Income Tax Liabilities, (2) Gift Of Land From Brother To Brother Tax Liabilities; (3) Money Gift From Brother To Brother Tax Liabilities; (4) Tax Exemption Of 3 Lakhs For Sr Citizens Age 60-80 At 3 Lakhs And (At 5 Lakhs For Super Sr Citizens Age 80+) Confirmation; (5) Confirmation Of The Curious Rule That LTCGains Income Tax Need Be Paid Only On Village Office Revenue Records Based Fair Value Of Land (Indexed) But The Money That Changes Hands Between Seller And Buyer Need NOT Be Included In That F Years Taxable Income Of Seller? (6) What is the income tax ITR form number to be used for the Financial Year (in next year = Assessment Year) for including such transaction as LTCG on sale of inherited property? Thanking You, Awaiting Your Kind Reply (Please reply by email ONLY as I am deaf (but well educated) so I cannot hear and talk on voice phone calls. Thank You)
Kindly note my just only 6 point questions relate to India income tax. (Not USA or other foreign lands income tax as you charged $-10 in foreign money). Thanks
Kindly include the related India Income Tax Rules Numbers and or court order numbers when answering the above just only 6 questions. Please
1) Cost to the previous owner would be considered. Holding period of previous owner would be included in holing period. Benefit u/s 54F and 54EC is available. LTCG rate is 20%+cess @4%. If land was purchased before 01.04.2001, you may consider SDV if it is more than actual cost of acquistion of the property.
2&3) Exempt in the hands of recipient. Money gift should be thri=u banking channels.
4) Correct
5) Stamp duty value/Guidance value. Value on which stamp duty is payable.
6) ITR-2 or ITR-3
Considering it a inherited property I assume it is long term asset and hence will attract 20% tax on capital gain amount.
No tax on gift between brother's.
No tax on Money gift between brother's.
Yes tax exemption limit are correct but it is only for resident senior citizens.
That is not correct if sale value is more you need to consider that, hence one need to consider whichever is higher.
If this is the only income file ITR 2.
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