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Mihir Tanna  |831 Answers  |Ask -

Tax Expert - Answered on May 10, 2024

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more
Kalasagara Question by Kalasagara on May 08, 2024Hindi
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Capital gain tax on sale of ancestral property. 1940 my father has got some ancestral property which purchased on 1930 and the same has been distributed among our family members 2 years back. I got my share 2 years back and now I want to sell the same. At present we don't know the purchase value of the property purchased on 1930. Please advise me how to calculate short term/Long term capital gain tax and how to utilise the capital gain tax to purchase new property or house/flat

Ans: It will be taxable as Long term capital gain. You have to get fair market value as on 1.4.2001 and after applying indexation on said value you can derive at amount of capital gain.

To save tax on long term capital gain; you can invest gain amount to acquire house property and get exemption u/s 54. As per section 54, if you want to buy a residential house property from long term capital gain from sale of house property then you must buy the residential house property 1 year before or 2 years from date of such transfer of shares or construct the house property within 3 years from date of transfer of such property.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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