Properties and assets are passed on to the legal heirs of the owner after his/her demise. There are many countries where the tax is levied on the inherited properties and assets but in India, it is not applicable. Since 1985, Inheritance or Estate Tax has been abolished. But let me tell you a little bit more about
inheritance tax on property.
The property transfer under the will or inheritance does not qualify for the tax in India. However, sometimes, the property received in inheritance is a source of income too. The owner may receive rent or interest from this property. The new owner is liable to declare such income and pay the taxes on the said property accordingly.
Similarly, if you decide to sell the inherited property, the capital gains will also be yours. So, you will have to pay the taxes on these capital gains. These will be considered as Short Term Capital Gains or Long Term Capital Gains, will depend on the period you hold the property for.
So to tell you about is there any tax on inherited property, the answer is technically No.
I hope now you know is inherited property taxable or not.
Read more:
How to make a will for inherited property?
How is tax on sale of inherited property calculated?
Is there any tax on inherited property?
Yamini
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2022-03-16T10:37:05+00:00 2022-03-16T10:52:34+00:00Comment
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