My relative has a vacant land of one ground (2400 sft) purchased more than 20 years back. He is a senior citizen living with his wife in his own flat in Tamilnadu. His only daughter is living abroad and not interested in the property. He wants to settle the property in favour of his wife and his elder brother.
The property is likely to be sold after settlement and the brother would invest his share of the sale proceeds for the construction of flats for his two sons after demolishing his own house. The wife will make her choice regarding the reinvestment options afterwards.
As regards the settlement in favour of brother - if the settlement is made in favour of wife and two nephews (sons of his elder brother) to facilitate the nephews to invest their share of the sale proceeds in the flats to be constructed by their father.- Can this be done in one settlement deed itself to reduce the registration work?
As regards Capital Gains Tax, will it make difference if Gift is opted instead of settlement?
CAclubindia
