India, July 26 -- Ram Naik's father had gifted him a flat in Noida in December, 2023. This flat was purchased by his father in April, 2005 for a total consideration of Rs.5 lakh. Naik intends to sell this flat in September 2025, for a total consideration of Rs.50 lakh. In such a scenario, how will the capital gains tax be computed?

While a property received as a gift from parents is not taxed, if you decide to sell it later, you will be liable to pay capital gains tax on the profit you make from the sale. "Even though you got the property without paying anything, the Income-tax Act doesn't treat the cost of the property as zero. Instead, you inherit the cost and holding period of the person who gave you the property (the donor)," says Ra...