My mother has bought vacant land in Bangalore in 1995. 22 years old land. we are trying to sell land for Rs. 30,00,000/- to the party. My mother age is approx 55 - 59 years.We have taken the land approx Rs.1 L in 1995.
Please inform whether we need to pay income tax. if my mother divides the property amount into 3 equal amount (son, daughter, parents) whether even we need to pay tax?
Also please inform how to exempt tax. We are very poor and trying to sell land for marriage of my 2 siblings. If we are going to gift the amount for my sister daughters income tax can be exempted. please inform.
Please inform if my mother gift the amount to my sister and their 2 daughters for their marriage can this can be exempted from tax. please inform.
2 Answers
Best Answer
Hi,
After selling the property, your mother has to pay taxes on Long term capital gains.
If she decides to gift these proceeds, then the receivers (family members) do not have to pay any tax.
Kindly go through below articles ;
https://www.relakhs.com/how-to-save-capital-gains-tax-on-sale-of-land-house-property/
https://www.relakhs.com/gift-income-tax-rules-detailed-guide/
sir, Thanks for your valuable reply. please note my mother has sold the land and the amount is in the bank. She is now planning to gift the amount to my sister daughters. I need to know whether my mother need to pay tax first and later divide the amount or without paying tax we can divide the amount as gift to my sister daughters for their marriage.
Hi,
If she has sold the property in Financial year 2017-18, she has to file her income tax return during Apr-july 2018. She can pay the taxes then.
You may consult a Chartered Accountant, calculate the exact taxes that are payable, you may keep this amount in her savings account and can advice her to distribute the balance proceeds as GIFTs as per her will and wish.
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