Tax »Posted 14 Apr 2012             Click here for Free Legal Advice           Disclaimer

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TAX ON SALE INCOME OF INHERITED PROPERTY   My deceased husband who was an N.R.I., purchased a Villa
in India worth Rs. 80 Lakhs, using his Savings and Bank Loan.

After death of my husband, as his Legal Heir, I am the owner of the Villa now.

As I am unemployed and as Bank Loan need to be repaid, I
am now selling the Villa for Rs. One Crore.

The Sell Price of the Villa is Rs. 18 Lakhs higher than
Purchase Price of the Villa.

But the Buyer and Seller of the Villa are two different
persons, my husband and myself respectively.

Should I pay Capital Gains Tax or any other type of Income Tax, on the Profit made ?

How is it possible to say that I made Profit, as I never
made any Capital Investment in the first place ?

I do not have a PAN Card.

Should I pay Income Tax on inherited Bank Deposits of my
husband, treating those Bank Deposits as
One Time Income ?

   Its not required by you to pay I/tax on your husband bank deposits, but what capital gain you have received from sale of the property should be considered as your income, and on that amount you should pay income tax.
Vijay Sahni
Due diligence Expert
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   Look you have to check whether the amount stated in the sale consideration is tact with the guideline value. From the guideline value you have to pay the mortgage amount for clearance and in the remaining amount if you have consideration it attracts Capital gain tax. First you need to ascertain whether yours is STCG or LTCG i.e. short term or long term and based on which the capital gain tax will be computed.

To avoid such LTCG if an individual or HUF having LTCG from transfer of a residential house makes investment to purchase or construct
a residential house, the amount invested in the new residential
house is allowed as a deduction from the LTCG. The new residential house can be constructed within 3 years from the date of transfer or can be purchased one year before or two years after the date of transfer.

In case you need any further clarifications contact us at

I.Stalin Selvamani, Advocate
M/s. S & P Law Associates
Law Firm at Chennai

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   Dear sister
1. as you are not incometax assessee, you need not strain about incometax or the capital gain tax
2. if the deduction of tax required in your case the bank itself will say to say to submit the concerned form 15 to declare as non assessee
3. The investment in the house will be considered as your thought given by your husband
4. you will be told or communicated to pay the capital gain tax at some point of time. till then you dont worry and strain
5. if you prefer to invest the amount to purchase the new property within three years, then yuo need not pay any capital gain tax.
All the best
Adv.A.P.Loganathan,MadrasHighCourt,Avoid Police/Court/Politician if possible
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