Heiridatory property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2017 Dear All,
I have one query about capital gain on heiridatory property
Me, my mom and my sister residing in father's flat (purchased in 1975)
There is no "WILL" made by my father.

Now, I have decided to transfer the property on my and my mother's name.
And I have decided to pay lumpsum (33.33% of market value) amount to my sister for realising her rights on said flat.

My question is,
1. will that amount is taxable to my sister's account,

2. Will that amount considered as a capital gain (she transferring / realising her rights on heiridatory property).

3. We don't have purchased agreement of the said flat as it was purchased before 1975, is there any reasonable amount which can be a cost of consideration. (valuation from valuer is almost not possible)

Thanks in advance for your valuable suggestions.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 November 2017 Get a gift deed executed in your name and mother's name by your sister on share of property and pay the amount as gift to your sister no tax payable.

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Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2017 Thank you Sir for your valuable advise, in case i don't want to make a gift deed due to some personal reasons, what will be the tax treatment

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 November 2017 Capital gains has to be worked out based on market value of the property as on 01-04-2001 with index cost and 20% tax payable on the gain.

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