New Delhi, Aug. 27 -- Receiving a flat, gold or other assets through inheritance does not trigger a tax liability immediately, but that can change when you decide to sell it for a profit. The resulting gain must be offered for taxation, though the capital gains computation depends on several different factors.

All types of capital gains are reported under Schedule CG of the relevant income tax return (ITR). If you have income from salary, pension, and capital gains which are more than Rs.1.25 year in a financial year, then ITR-2 becomes applicable. However, in cases where you run a business or have income from professional services, then ITR-3 must be filed.

For an inherited property, the heir generally adopts the previous owner's cost ...