21 August 2010
1. If the property is agricultural land within the meaning of IT ACt situated outside the prescribed limit after municipal juris. Then no liability occurs under IT act.
2. If 1. is not the case capital gain arises subject to indexation of cost (Value as on 01.04.1981). (deduction is allowable proportionate to amount invested in purchase of new agricultural land) In this case it is suggested to deduct tax liability from the sale proceed and then proportionately bifurcate the sale proceed according to agreed proportion.
in this case she has to take PAN and also keep a copy of sale deed contact ur consultant for detailed computation