Sec 49 of the Income Tax Act : Where the capital asset became the property of the assessee—
(i) on any distribution of assets on the total or partial partition of a Hindu undivided family;
(ii) under a gift or will;
(iii) (a) by succession, inheritance or devolution93,
(b)...........
the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the property acquired it, as increased by the cost of any improvement of the assets incurred or borne by the previous owner or the assessee, as the case may be.
So in your case , as the property has been inherited by you by your father and the share of your mother and brother has been released without any payment of consideration, then the cost would be cost incurred by your father and the period of holding of your father would also be considered in determining the period of holding of the assets for determination of short term or long term capital gain . As the inheritance of property is not considered as transfer u/s 47.
Nothing contained in section 45 shall apply to the following transfers :—
(iii) any transfer of a capital asset under a gift43 or will or an irrevocable trust :
As the period of holding is more then 3 years, it will amount to long term capital gain
Cost of acquisition : 185000/-
Indexed cost of acquisition : 1,85,000 * 632/ 244 = 4,79,180
Cost of improvement : nil in your case
Capital Gain = Sale consideration -( indexed cost of acquisition + cost of improvement)
= 22,50,000- (4,79,180+nil )
= 17,70,820/-
You can claim the exemption under sec 54 from payment of capital gain - by investing the amount of the capital gain in a residential house within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after that date constructed.
For further clarification on the matter as regarding the lock in period of new property, how to disclose it in the return and etc , do contact me on
todi.megha @ gmail.com