filing of incometax

As far as your father's case is concerned it is very straight forward. Gifts are exempted from the scope of transfer and as the gift is from relative, the same is not taxable on receipt in your hands.

On sale, capital gains tax will have to be paid by you. The consideration has accrued now. You cannot wait for receipt of full amount. So tax on entire consideration to be paid.

Investment in mutual funds will not get exemption from capital gains tax. You may invest in NHAI or REC bonds for purpose of exemption from cap gains or purchase another residential property.

The income tax dept will not question on grounds that you hav not filed return in earlier years. If your income was indeed within the basic exemption limit then u r very safe. The financial year is about to end so calculate and pay advance tax before 15th march to avoid interest.

The asset in question if a long term asset(i.e. held for more than 36 months including ur father's holding period), then tax @ 20% will apply for consideration less transfer related expenses less Iindexed cost of acquisition/improvement

thank you,though its a gift i have to pay capital gains and if i pay my tax now what if the buyer cancels the agreement of sale.

we are 2 brothers my father is having a property of 1000sqyrds

some part is ancestoral,  You must ascertain the area right now and collect ancestral documents of land. Period of holding can be  reckoned  with the help of those documents.  

some gift, Bakshishnama or Gift Deed  / Date / Area

some he bought. Purchase deed

now he did a gift deed 4months ago to us. gift deed

now my brother and i sold the property and did a sale agreement we recieved an advance of 40,00,000 rupees.

At this point of time you have received only advance. Is it by cheque or by Cash ?

Capital Gains liability will arise only when the Sale Deed will be executed or when you will give him the possession of land.

So apply for PAN Nos. urgently and consult a CA.

Such matters may invite the attention of IT Department also as nowadays most of the taxmen are referring this site for their own  overall updation.