I am currently a law student, so I would like to share some information about- is there inheritance tax in India or not. I have seen many people pose this question frequently, so let me tell you that in India there is no tax levied on inherited properties. The Income Tax Act of 1961
clearly states this.
Seek NoBroker’s legal assistance and know what tax needs to be paid for your inherited property
Is exemption from tax on inherited property India possible?
When a property is inherited or received as a gift, no tax is levied on the receiver. But when the recipient sells it, capital gains on the sale of the property are taxable. But one can claim a tax exemption on the gains as well. The methods to do so are-
Reinvest in another property-You can claim a tax benefit by reinvesting the gain in another property. One can claim a tax benefit in capital gains when the gains are less than Rs 2 crore and the reinvesting is done on a maximum of two residential properties in India.
If the gain is more than Rs 2 crore, the inheritor can invest in one property to claim the tax exemption. Please note that the investments are to be made within a stipulated time, one year before the sale, two years from the sale, or within three years for an under-construction property.
Use the profit amount to construct a house within three years-Another way of claiming tax exemption is to invest the amount of gains to construct a house within three years from the sale of the inherited property
Invest the amount in capital gains bonds-Another way of claiming tax exemption is by investing the amount of gains in capital gains bonds under Section 54EC of the Income-tax Act of 1961. The investment limit mentioned in such bonds is restricted to Rs 50 lakh per financial year.
I hope this answers
is there inheritance tax in india or not.
Read More:How to avoid capital gains tax in India?
Is there any tax on inherited property?
What is inheritance tax in India?
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Is there Inheritance Tax in India?
Praveen
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2023-04-28T17:13:35+00:00 2023-04-28T17:14:48+00:00Comment
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