What Is The Difference Between Inherited And Ancestral Property?

While selling or buying land, it is important to understand its terminology. Most of the time, we hear names like inherited property or ancestral property. This article will help you understand the difference between the two, according to Indian law.

Ancestral Property:

Any possession that has been inherited and passed down through the generations is referred to as ancestral property. Property that has been passed down from father to son for at least four generations is referred to be ancestral property in India. There is no time limit for claiming ancestral’ property under Hindu law. The property must, however, be sold with the consent of all successors if any of them desire to sell it. A sale of ancestral property is prohibited without the approval of all descendants. If some of the successors object to the sale, they have the right to initiate a lawsuit to prevent it from happening.

All heirs have an equal claim to ancestral property under Hindu law, and all successors must agree to any sale or transfer of the property. Any disagreements could be settled in court or through mediation, if necessary. It is significant to note that the sale of an undivided ancestor’s property may also have tax repercussions. To guarantee compliance with the relevant rules and regulations, it is advisable to seek the counsel of a tax professional.

Inherited Property

Any property that a person receives following the passing of a family member is referred to as inherited property. Either a will or inheritance laws may be used to pass the property to the individual. When it comes to inherited property, the cost of acquisition is decided by the property’s market worth at the time of the family member’s demise. Any capital gains tax that may be due on the sale of the property will be computed using this valuation. The Indian Succession Act of 1925 governs the ability to inherit property in India. This legislation establishes who is eligible to inherit property and how it will be divided.

Owning ancestral property has distinct legal ramifications from owning inherited property. In contrast to inherited property, which can be sold by the owner, the ancestral property requires the consent of all successors before it can be sold. Both inherited and ancestral property have different tax ramifications. While the ancestral property is immune from this tax, an inherited property is liable to it. The provisions of the Indian Succession Act and the Hindu Succession Act govern the transfer of ownership of ancestral and inherited assets in India.

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