I am 51 years married and residing in Hubli. My father recently passed away leaving me a property worth INR 1 Crore in his WILL. I have rented out this property. I have 2 questions. Do I have to pay tax on my inherited property? Will I have to pay tax on the rental income?
You have inherited this property under a WILL. Your inherited property will not be taxed. Any income arising at a later point in time from the property (i.e., rental or deemed rental or capital gains from sale of the property) shall be taxed in your hands. if your total income exceeds INR 50 lakhs during the relevant financial year (FY), you would be required to disclose the cost of each of the house properties you inherit under the Will in the schedule asset liabilities (AL). The cost of the house property shall be considered as the one at which the original owner had acquired it, other than under a Will or Inheritance. Cost of improvement will be added.