Tax calculation - old property

[Nandagopal Samarajalingam]

When an old property (40 years old ) is inherited by the children from the father and after his death the property is sold currently and the proceeds are shared equally between the children, Is the Capital Gains tax is applicable individually for all the children ? How is the tax calculated, if applicable? What is the time limitation ?

AI Summary

Inherited Property Sale: Capital Gains Tax Applies Individually to Each Child; Consider HUF and 1981 Valuation for Accuracy. A discussion on a forum addresses the tax implications of selling an inherited 40-year-old property. The main inquiry is whether capital gains tax applies to each child who inherits and sells the property. One response clarifies that each child is individually taxable, as they become absolute owners upon inheritance. However, if the property is part of an unpartitioned Hindu Undivided Family (HUF), the situation may differ. Another response advises checking personal laws and the property's acquisition history. It suggests using the fair market value from 1981 for tax calculations and emphasizes providing detailed information for better discussion outcomes.