Is LTCG tax applicable even if i do not receive any amount from sale of ancestral property

Thanks for your reply.

My question is whether IT department will accept your stand that you did not get any money and LTCG,

- if you simply forego your share without any relinquishment deed or family settlement deed ?

- and by simply putting your name in the sale deed with "No Consideration" and signing it?

as an Assessing Officer can always feel that it is an evasion of tax - in the absence of Relinquishment deed or Family Settlement Deed.

1. All the above 4 members come under Class 1 Heirs of "India Succession Act 1925" and they rightfully have a share in the property. 
2. To avoid any kind of mishap in the future it would be wise to execute a relinquishment deed and then proceed with the sale deed of the property. 
3. Relinquishment deed should be executed and rights should be foregone by Son and daughter of the daughter. And then the same should be specifically mentioned in the sale deed of the house property. 
4. This way it will be clean and neat. Since son and daughter of daughter are willingly don't want share there should not be any problem with respect to family settlement and from department angle, the relinquishment deed will stand as documentary evidence to avoid further questions from the department. 
Please correct me if the above interpretation has an alternative view. 

Thanks for your suggestion and reply.

Even if any question comes from IT office later, Relinquishment Deed will serve as the documentary evidence (in addition to the supporting fact that there was no credit in to the accounts of Children of Daughter)

Please clarify on the following two points too

1) One of my relative mentioned that only the Daughter can execute the Relinquishment Deed and the Children of the Daughter can not execute the Relinquishment Deed.  I think it is not correct.  If a Class1 Legal Heir has a right in ancestral property then he has the right to relinquish also.  Please confirm

2) Once the Children of the Daughter execute the Relinquishment Deed, they automatically forego the rights of their own children also in Great Grand father's property.  Is that correct? 

1. Yes both the points hold good. Because of the simple reason that relinquishment is nothing but forgoing the rights over the property. And the IT department is concerned only with escapement of income. 
2. In other words, whether your income has escaped the tax net will be the angle in which the IT department see. I am sure from that angle you are good. And relinquishment deed is only with respect to this property. Still, they will be considered as legal heirs for other property or for other purposes. 
Please correct me if the above interpretation has an alternative view. 

The point that the relative makes is that after the expiry of the daughter her children can not make Relinquishment Deed.  Is that correct?  I feel it is not correct as the persons who "claim" rights also have the "right" to relinquish.