Income tax exemption on capital tax gain

1. It u gift the property to your mother, then it is not regarded as transfer of capital asset and no capital gain and hence no tax liability.
2. Cost of asset will be cost of purchase to the previous owner (your uncle I presume). You can consider the cost proportional to the area proposed to be sold.
3. ICA = Cost of acquisition x CII for the year in which asset is transferred / CII for the year in which the asset was first held by the previous owner
4. If you want to get exemption from capitgal gain, u need to invest in other asset like property, bonds etc. https://www.charteredclub.com/section-54/

Thanks for your reply.

Am selling this property to some third party and reciving the ammount in my account. My PAN card is mentioned in the sale deed.

Now how can i gift the ammout of the sale to my mother to get the exemption. What is the process?

In that case, transfer of capital asset shall not be treated as gift to your mother and u need to pay tax on capital gain. Capital gain on transfer of property by gift is not taxable only when gift deed is executed and registered.

As I understand, the amount that you gift your mother is not taxable in her hands but you are liable to pay tax on capital gain.

Thanks again for your quick response.

After calculating the ICA value of property, do i need to get it certified through some authority? and what are the supporting document i need to put show ICA value.

I am doing contruction in my house, in that am spending 6-7 lakhs. Can i claim exemption on 10 lakh capital gain for this expense? what is the procedure to get that expemption.

Am a salaried person , my company is deducting TDS from my salary.

1. If the propoerty that u hv sold now is a residential property, then u can claim exemption u/s 54 (certain conditions to satisfy) to the extent of investment in the new asset or capital gain, whichever is lower.
2. If the property that u hv sold now is other than residential property, u can claim exemption u/s 54F (conditions apply). The amount of exemption will be: investment in new asset / net sale consideration x capitgal gain (exemption not to exceed capitgal gain)

For more details: /articles/capital-gains-exemption-from-tax-u-s-54-54f-23471.asp