Answer

1. F

   Facts

   Inheritance is not a transfer, so no tax arose when you received the house. When you sell, cost is your father's cost, and his holding period counts in yours. The gain is usually long term.

2. P

   Provisions and law

   • Sec 47 (now Sec 70)Gifts and inheritance are not transfers, so no capital gain arises on them
   • Sec 49 (now Sec 73)For inherited or gifted assets, cost is the cost to the previous owner
   • Sec 2(42A) (now Sec 2(101))Holding period: 12 months for listed securities and units, 24 months for other assets, to be long term
   • Sec 112 (now Sec 197)Other long-term gains at 12.5% without indexation; resident individuals and HUFs may choose 20% with indexation for land or building bought before 23 July 2024
3. A

   Analysis

   If your father bought the house in 1995 for ₹8 lakh, that is your cost; for property bought before 1 April 2001, the 1 April 2001 fair market value can be used instead. The combined holding is far more than 24 months, so the gain is long term and you can choose the lower of 12.5% without and 20% with indexation, as a resident. Sec 54 or 54EC can save tax if you reinvest. Keep the will or succession certificate.

4. C

   Conclusion

   1. 1Find the original cost and purchase date, or the 2001 value.
   2. 2Treat the holding as long term.
   3. 3Compute tax both ways and pick the lower.
   4. 4Consider Sec 54 or 54EC reinvestment.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.