Tool 11 · Inherited Property

Inherited Property LTCG

Selling property you inherited? Calculate your gains correctly — including cost basis rules under Section 49(1) and Section 55(2)(b).

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No indexation for NRIs — this is final. The grandfathering rule (20% with indexation) applies only to Resident Individuals and HUFs. As an NRI, you pay a flat 12.5% LTCG on your gain, regardless of when the property was purchased. Confirmed by Finance Act 2024, carried forward under IT Act 2025.
Inheritance details

When did the original owner first acquire the property?

Use the stamp duty circle rate for 2001, or a registered valuer's report. Under Section 55(2)(b), this cannot exceed the stamp duty value on that date.

Major documented renovations or additions after 1 April 2001.

Brokerage, legal, stamp duty on the sale.

Gains are computed separately in each heir's hands.

Enter the sale price and cost basis to compute your share.

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Covers:LTCG 12.5%Section 49(1)Section 55(2)(b)No Indexation
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