INCOME TAX21 Sept 2026
Selling an inherited overseas property? Here’s how India taxes the gain | Mint
If you are an India resident and sell an inherited overseas property, the gain is taxable here. Your cost and holding period follow the previous owner's. If it was bought before 1 April 2001, you may use its fair market value then. For pre-23 July 2024 buys, compare 20% with indexation against 12.5% without. Singapore usually charges no capital gains tax on this sale.
Key Statutory Highlights
- Where a capital asset is acquired by inheritance, the cost of acquisition is deemed to be the cost for which the previous owner acquired it, and the holding period includes the period the previous owner held it.
- Since the father acquired the property before 1 April 2001, the taxpayer can adopt either the actual cost of acquisition or the fair market value as on 1 April 2001, though that fair market value cannot exceed the stamp duty value where available.
- As the property was acquired before 23 July 2024, the grandfathering provision applies, so the taxpayer can compare tax at 20% with indexation against 12.5% without indexation and adopt the option giving the lower liability.
Actionable Advice for Taxpayers / Founders:Before you sell, consult a chartered accountant to compute the gain in foreign currency and convert it at the SBI telegraphic transfer buying rate for the last day of the month before the transfer, and to check whether reinvesting in a qualifying asset in India can reduce your tax.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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