Estimate taxes on inherited property and assets. Covers capital gains on sale of inherited property and tax implications under Indian law.
India does not have a separate inheritance tax or estate duty currently (estate duty was abolished in 1985). However, when you sell inherited property, you pay capital gains tax on the profit.
For long-term capital gains (held over 2 years), the tax rate is 20% with indexation benefit. For short-term gains, it is taxed as per your income tax slab rate. The cost basis is the original purchase price paid by the deceased.
You can save capital gains tax by investing the proceeds in another residential property within 2 years of sale (or constructing within 3 years). This exemption is under Section 54 of the Income Tax Act.
This calculator provides estimates only. Tax laws change frequently. Consult a qualified chartered accountant (CA) for accurate tax planning on inherited assets.