Saving capital gain tax

Hitesh,

I assume 32 lacs mentioned by you is market price and not sale price as u said ur aunt is willling to hold it further.

Initially when Nanny was present the cost of acquisition of your mother was only Rs 6.67 lacs (20 lacs /3)

After the death of joint assessee (ur nanny) the property was inherited to the rest of the co-owners. Now since your mother is legal representative of your nanny if there are no other childrens to ur nanny, then the unclaimed part of ur nanny will be added & devolve upon ur mother.

Hence after death of ur nanny ur mothers cost of acquisition will be Rs 6.67+6.67 lacs i.e. Rs 13.34

OR ELSE if by ur aunt u meant ur mothers sister i.e. ur nanny held it jointly with her 2 daughters then the share of ur nanny will get divided between ur aunt and ur mother. in which case the cost of acquisition of ur mother will be Rs 10 lacs (RS 6.67 lacs + 3.33 lacs)

assuming there are no cost of improvements

so in first case ur mom being only child to ur nanny she will have to pay:

16 lacs - 13.34 lacs = 2.66 lacs is capital gain and tax on this gain will be at 30% rate

so tax liability will be approx Rs 80000/-

and if cash is not disclosed then Rs 12.5-13.34 lacs then there is no captal gain tax as there is a LOSS of 84000 approx.

and IN SECOND CASE - NANNY HAS 2 daughters

tax will be 16 lacs - 10 lacs = 6 lacs x 30% = 1,80,000/-

and if cash is not disclosed in agreement then tax will be 75000/- 30% of 2.5 lacs (12.5-10 lacs)

this is just an advice contact ur tax consultant for tax planning