In case when you have been gifted property from some relative or family member, there arises taxation implication upon the sale of such gifted property. For the purpose of computing your taxation liability, your holding period in respect of the property dates back to the time when the person who gifted you the property was in possession of it.
If the property has been held for over 24 months then in such as cost LTCG taxation arise @ 20.6% and applicable surcharge. The gains on the sale are computed as net sale proceeds i.e sale proceeds minus any brokerage charges if incurred less the indexed cost of acquisition.
Also, in case the person who has gifted you such a property acquired it before April 1, 2001, then its fair market value can be assessed to be the cost of acquisition as instead of the actual cost of purchase by the person gifting it to you. Then this fair market value has to be indexed using the cost of inflation index notified as on April 1, 2001 to draw out the inflationary impact on the fair market price of the property with time.
For the FY 2002, the CII is 100 and that for the previous FY i.e. 2018 it stands at 272.
But there are ways as per the income tax provisions to avoid such tax implications such as purchase of specified bonds or a residential property. But for it some timelines have to be adhered to and also in case when the reinvestment is being made into buying a residential asset but the time falls after the due date of filing return in such a case the net gain or LTCG has to be deposited in a capital gain account scheme