Apart from this, people are also going to get significant relief regarding tax. Actually, now in some areas of Delhi, people will be given exemption in house or property tax. This has also been announced. In fact, Delhi Mayor Shaili Oberoi on Saturday announced exemption in house or property tax for residential areas under the rural jurisdiction of MCD.

Delhi Municipal Corporation

Oberoi said the Municipal Corporation of Delhi (MCD) will not collect any house tax from ‘Lal Dora’ or extended ‘Lal Dora’ properties in rural areas. He said, “MCD will neither send notices nor collect property tax in the residential areas falling under Lal Dora or Extended Lal Dora in its rural jurisdiction. This is a big relief from Chief Minister Arvind Kejriwal for the people living in rural areas of Delhi.

Tax on properties

However, apart from this, tax will be levied on some properties. Oberoi said that the tax imposed on commercial properties in rural areas will remain the same. Thousands of roads also come under MCD in Delhi. Around 2,168 roads in rural areas of Delhi are notified under MCD and commercial properties located on these roads will have to pay property tax.

Panchayat was held

Earlier, there was also discussion regarding property tax. This decision has been taken after a Panchayat of 360 villages of Delhi was organized on September 3 to discuss the issue of property tax imposed in rural areas. The public is expected to benefit greatly from this.

The post Tax on Property: These people will not have to pay this tax, got exemption first appeared on Rightsofemployees.com.

It is a pleasure for all to receive an inheritance, unexpected or expected, from their relatives. Which makes you feel that you were so important that someone could leave something for you. But what about when you come to know that you may have tax liability on the inheritance received? Does one have to pay inheritance tax in India? What if you decide to sell the movable or immovable property acquired? Is there any short term or long term capital gains tax involved?

Inheritance tax is levied on any property or assets that are bequeathed by the deceased to his legal heirs. Be it children or grandchildren. The good news is that there is no inheritance tax in India. Although many developed countries still use it. This tax was abolished in 1985, prior to which the Executors of the estate of the deceased had to pay a high ‘Estate Duty’ of up to 85% of the value of the inherited property under the Estate Duty Act, 1953.

Even though properties given to legal heirs may be treated as gifts, since they are received without consideration, no gift tax is levied because the Income Tax Act, 1961, provides for property received by way of inheritance or will. excludes from inheritance. Hence, these are not treated as income and no tax liability will arise on the property received by you as inheritance. It is possible that the asset or property that you get may be capable of generating income. For example, you may inherit a rented house and, as the legal heir, you become the owner of this property. In such a case, the rent will be added to your income and taxed at the applicable rate.

If you receive any bank deposit or property that earns interest, it will be added to your income and taxed. So the income from inherited property or assets will be taxable in your hands. Once you become the owner of the inherited property or asset, you can choose to sell it at a later date. If you do so, any gain or loss from the sale of this asset will go to you. In case of profit, you will have to pay capital gains tax. Whether it is short term or long term capital gain will be determined by the holding period of the asset. For computing the holding period, your cost of acquisition will be considered as on the original date of purchase by the deceased.

For example, if you have inherited a house in 2020 after your father’s demise and you decide to sell it in February 2022, the profit earned by you will be considered as capital gain. If your father bought a house in January 2007 for, say, 50 lakhs, then this purchase price would be treated as cost of acquisition. The holding period will be considered as 15 years as it will include the period for which both you and your father held the property. Since this period is more than 24 months, it will be treated as long term capital gain and you will have to pay tax accordingly. You can take into account inflation to reduce your tax liability while computing capital gains.

The post Tax on Property: Do I have to pay tax on my inheritance? first appeared on Rightsofemployees.com.