Capital gain tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2012 My mother-in-law has purchased a property in 1962 for Rs.7000.She has 3 daughters.Now she decided to sell the property for Rs.1.25 crores in the financial year 2012-13.She is aged 80 years.She wants to divide the sale value among her three daughters.Please answer my queries:

1)How much capital gain tax will involve if she decide not to buy property/invest in 3 year bonds?

2Is there any relief as she wants to gift the proceeds to her dughters?

3)How can she plan her tax payment?

4)what would be the tax liability if she goes for payment of tax by availing idexation?

5)Is she eligible for tax payment without indexation @10%of capital gain?

6)Can she keep the capital gain in her SB account or in her daughters s Account till she decide on her move to invest either in bonds or goes for purchase of property?Can she utilise the money for family expenses till the time limit for investment?ie.date of filing of IT return?

Mohit Naithani

Mohit Naithani (Expert)
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15 December 2012 1. Plz confirm Fare Market Value of Property on 1st April 1981 from stamp duty authority...
2. Any gift recv from relative is not taxable. Hence its not taxable for her daughter...