Case scenario: My father self-acquired an immovable property in 1975 and died intestate in 1995. And as a class 1 heirs (consists of My mother, one elder sister, one elder brother and myself) sold
The property with a consideration of 44,00,000.00 by signing the sale deed.
Question 1: Will this sales will attract long capital gain tax. Actually, as per Hindu Succession Act, we inherited but not transferred the property in any one of legal heir’s name being a intestate. How come the gains will arise?
Assuming the sale will leads the LTCG and the each of the class 1 heirs (4 members) have an equal share of sales proceeds. To save the tax on gains, each person has to re-invest by buying new property (as the 6 months’ time frame for capital gains bonds exceeded due to various reasons). Practically, with 11,00,000.00 individually cannot buy property in Mumbai. So it was decided that one member use the entire sales proceeds (of part of) to buy and register in his/her name (Registration on single name to avoid future legal consequences).
Is the above can be achievable by relinquishing/gifting the other 3 shares to one member. If yes, what are the documents to be prepared.
Please advise.
Sarath S
CAclubindia
