Hello,
I am seeking a professional advice regarding the computation of capital gains tax in the following matter.
My mother, aged 58, housewife, inherited a plot of land from her late father. Subsequently, her sister undertook the development of a multi-storeyed residential building on that plot. Upon completion, my mother’s sister gifted one of the flats to my mother. As the property was received as a gift, no monetary consideration was paid for the same.
My mother has been in possession of the said flat for approximately 2.5 years and is now considering selling it. The current market valuation of the property is around ₹30 lakhs.
In this context, I would like to understand the following:
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How will the capital gains tax be calculated in this scenario?
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Will my mother be liable to pay any capital gains tax on the sale?
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Are there any exemptions or reliefs available under the Income Tax Act for such a transaction?
Your guidance on the applicable provisions and possible tax implications will be highly appreciated.
CAclubindia
