New Delhi, Feb. 8 -- Three sisters inherited one piece of land in 2003, but it was partitioned among the sisters in 2010. For the indexed cost of the purchase in the calculation of long-term capital gain, should we take the market value as of 2003 (date of inheritance) or the market value as of 2010 (date when the inherited property was partitioned and when the exact divided share of the inherited property was known? We are planning to sell my share of the property, which is duly partitioned. How will the tax be computed?

Since the land is being sold after having been held for more than 24 months, the profits shall be treated as long-term capital gains. In respect of assets that are inherited or received as gifts without consideration, t...