Selling property inherited from father

rajesh singal (Querist) 09 September 2013 This query is : Resolved
Dear Experts,

I own two residential properties( one self occupied and one rented) on my name and my father had one(residential) on his name. After his death the third property was interherited by me through will. I want to sell this third property and want to buy a small one on my name.

1. Is it allowed to have three properties on one name?
2. Do i need to pay capital gain on selling third property inherited from father even if i am purchasing a new property in lieu of sold property(re-investing proceeds of selling into residential property) ?
3. Is there legal way to minimize the capital gain tax libility while selling this third property?
4. Do i need to pay wealth tax if i keep three properties? What is rate of wealth tax?

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Anirudh (Expert) 09 September 2013
Dear Mr. Rajesh,
You can own any number of houses / residential units. There is no legal bar.

Yes, you have to pay capital gains tax on selling any of your properties. None of the exemption provisions for saving Capital Gain Tax is available to you since you own more than one residential house apart from the one which you are trying to sell.

Yes, you have to pay wealth tax if you keep more than one residential house, provided the threshold limit of the value of the property attracts wealth tax.

R.K Nanda (Expert) 09 September 2013
contact tax lawyer.

Raj Kumar Makkad (Expert) 09 September 2013
I do agree with Anirudh.

Rajendra K Goyal (Expert) 09 September 2013
1. You can own as many properties as you wish or can.
2. capital Gains tax is payable as per IT Act. Consult tax adviser for details.
3. You may consult your tax adviser with all the details.
4. Yes, if attracted under Wealth Tax Act.

Guest (Expert) 09 September 2013
Agree with experts.

Sudhir Kumar, Advocate (Expert) 09 September 2013
nothing more to add.

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