Legal Question in Real Estate Law in India
Me and my brother inhereted an apartment after the death of my father in Jan'10. In Oct'10 we got it mutated in our joint name.
This flat is in a cooperative housing society and my father had paid approx. Rs 13.03 lacs to the society towards cost of construction during the period 2001-2004. He got the possession in 2004.(the cost on account of land was given around 35 years back to the society and is negligible by todays inflationary rates).
We both want to sell this. I have the following questions:
Is there any Income Tax on inheritance of this flat.
If we sell this, can we invest the proceeds only in Residential property to avoid capital gain tax on this. What if we invest in a commercial place.How much is the capital gain tax we need to give on this sale transaction, if we invest it in commercial place.
MM
1 Answer from Attorneys
There is no income tax on inheritance. If you reinvest the proceeds of sale of your flat in property (Residential or Commercial ), then you dont have pay any Capital gain tax.
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My father passed away leaving a House where me,my mother,my brother & my sister... Asked 3/06/11, 12:59 am in India Real Estate and Real Property
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