Capital Gains Tax On Inherited Properties
January 26, 2014 2 Comments
At present, there is no tax on inheritance in India. However,when you sell these inherited properties, you would be liable to pay income-tax in India on the gains earned by you on the sale.
For determining capital gains, you will get a deduction of the cost incurred by the previous owner to acquire the property as well as any expenditure that you directly incur to sell the property. If the date of acquisition of the property is more than three years back, you will get a deduction of the indexed cost of acquisition which is the original cost as adjusted by the cost inflation index from the year of purchase to the year of sale. If the property has been acquired before 1 April 1981, you have the option of substituting the fair market value as on 1 April 1981 in place of the original cost. Thereafter, you can claim indexation benefit on the substituted cost.
The rate of tax, including cess on long-term capital gains, is 20.6% and on short-term capital gains, it is 30.9%. If your income exceeds Rs.1 crore, the rate of tax would be 20.66% and 33.99%, respectively. Read more of this post
The US is undoubtedly a great place to make money.The only issue is that in the US there are federal,state and local taxes and the Americans insist on levying them on nonresident aliens too.If you are a nonresident alien doing business or working in the United States, you are required to file a tax return if your U.S. source income is greater than your personal exemption ($3,900 in 2013). Now this can be a real bitch if you are 100% unfamiliar with the US system and don’t know your way around.And unlike India,there is a greater degree of tax compliance in the US and the authorities take a dim view of non compliance.The best way of avoiding needless trouble is to hire a local attorney. 
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