Income tax or capital gain tax for Resident Individual and Non resident individual as per IT ACT

My father in law built a kothi in Noida in 1990. He and his spouse both expired, three children are beneficiaries as per regd WILL. Only My wife is resident individual as per IT ACT. Both her brothers are settled abroad and non-resident.

(1) Should property be regd in her name or all three names as per succession cert.

(2) what will be income tax or capital gain implications for all three of them.

Brothers are not able to visit India as per their medical issues.

Best way to sell the property by my wife and pay brothers their shares, with minimum Tax implications

Thanks to all of you.

 

 

Replies (1)
  • Registration: Governed by the registered WILL (no succession certificate needed); transfer to all three beneficiaries or consolidate via a relinquishment/gift deed to the sister.

  • Tax on Inheritance: Nil (Tax-free under Sec 56).

  • Capital Gains: Long-term capital gains apply based on the original cost/FMV from 2001 with indexation.

  • Best Strategy: Have the brothers transfer their shares to the sister via a registered relinquishment/gift deed so she becomes sole owner, simplifying the sale process and avoiding complex non-resident TDS compliances.

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