GOOD AFTERNOON
MY PARENTS HAVE SOLD A PROPERTY ( FLAT) IN DELHI RECENTLY.( JAN 2023)
TOTAL SALE VALUE: AROUND 75 LAKHS
THIS FLAT WAS PURCHASED BY THEM IN 2003 AT 4,25,000 .
I WANT TO KNOW HOW MUCH MINIMUM CAPITAL GAIN TAX IS DUE FOR THEM.
THEY PLAN TO PURCHASE ANOTHER PROPERTY WITH ME. ( SOME CONTRIBUTION FROM MY SIDE)
AND GIVE SOME AMOUNT TO MY SISTER ALSO.
HOW MUCH AMOUNT CAN THEY TRANSFER TO MY SISTER AS GIFT AND HOW MUCH AMOUNT DO THEY NEED TO INVEST IN NEW PROPERTY TO AVOID CAPITAL GAINS TAX .
KINDLY ADVISE ON THE SAME
THANKING YOU
BEST REGARDS
D. MUKHERJEE
HOWEVER,
Ans: Hi Debhashish,
Assuming that the purchase was done in FY 2003-04, the indexed cost of acquisition is approximately Rs. 13,56,000 and accordingly the long term capital gain is approximately Rs. 61,44,000.
Considering the above, gift to your sister could be Rs. 13.56 Lakhs and reinvestment in new residential property to achieve Zero tax status would be Rs. 61.44 Lakhs