Clarification capital gain

She may leave a Will stating her wishes on who shall be the beneficiary(2 sons) of her property, as well as the 2 daughters also need to make an declaration that they or their family shall not claim any rights from this property in the future.

the amount deposited in capital gain deposit scheme is to be utilised by the assessee within a period of 2 yrs/3 yrs as the case may be. If such amount remains unutilised till the expiry of above mentioned period, then it will be taxable in the hands of the assessee.

but in case, the assessee dies and the such amount remains unutilised, it will not be taxable in the hands of legal heir of the assessee. because such unutilised amount is only an asset devolving upon them, it is not in nature of income in the hands of the legal heir.(CBDT circular )

therefore..

1- if the amount is splitted among the sons before the the death of the assessee then it will be taxable in her hand(mother). in case such amount is recieved by the sons as legal heir after the death of the assessee then it will not be taxable, provided the death of mother has occured before expiry of 2/3 years.

2. mother should purchase the house in his name and should distribute the property in name of sons equally by executing 'will'. Alternatively she may aquire the property in the name of her sons but it may result in unnecessary litigations in department.