Dear Sir,
My father having self earned ( bought in 25 years back ) 30*40 site in Bangalore. my father passed away ten years back without any will. now we are planning to sell the same. How to get full tax exemption on LTCG . Because we are not planning to buy any residential house or nothing else for that amount. & Today's plot value is around 80 lakhs. We are 3 siblings . As you said earlier that only 50 lakh we can deposit in bank for Ltcg Scheme to get tax exemption. Which is better & Kindly give me legal advice & one by one procedure for both . My queries are....
1) can we transfer khata in my mother name ( Senior citizen ) & sell the plot .
Then can deposit 80 lakh in bank in Ltcg scheme to get full tax exemption.
OR
2) can we transfer khata in all 4 members (my mother & we are 3 siblings ) & sell the same to buyer. Then can deposit 80 lakh in bank ( joint account ) in Ltcg scheme to get full tax exemption .In this case can all individual get 50 lakh Of tax exemption for LTCG. What is lock in period .
OR
3) any other good way get full tax exemption
Kindly can I get the detailed info on this.
Thanking you
2 Answers
Hi,
It is advisable to get Khatha Transfer done in all of your names (four).
Even if you would like to deposit in Capital Gain Account Scheme offered by a Bank, you need to utilize these funds to buy/construct a new property within a specified time-limit.
If you are not ready to buy or invest the proceeds in any of the options (under section 54) then you have to pay tax on Long term capital gains.
Kindly go through below articles :
Hi,
1 - Yes, the Sale proceeds can be divided among all the Legal heirs and tax liability also can be borne by all of you.
2 - My mere just transfer of Khatha, your mother wont become Sole owner of the property. The remaining Legal heirs have to execute Relinquishment Deed (give up their ownership in the property). Then she will become the Sole owner of the property . There is no special provision to Senior citizens with regards to LTCG tax exemption options.
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