I am staying in an apartment which is in my fathers name. My father expired 20 years ago. I have after that been staying in the same apartment and paying property tax etc in his name. I was issued the legal heirship certificate 20 years ago itself. I would like to now sell the apartment and give my mothers share. We are the only 2 survivors. Mother is about 70 now.
We are planning to sell the apartment and take each ones rightful share. As per law it is 2/3 for the son and 1/3 for the wife.
My Question - People say when i sell the flat almost 25-30% has to be given as capital tax or something. I am self employed. Also not a tax assesee since i dont fall cross the minimum slab. I was also told if i buy another property with this money then i dont have to pay this tax. Also there is some depreciation law and indexing etc since its a very old flat which might exempt me. The opnions seem to confuse me.
What is the actual true fact and what do i have to pay. Also i will only have to pay on my share right ? Also i am planning to only put this money in a bank and use the interest money for monthly survival expenses. Since i dont have any other solid form of reliable income and have not been doing well business wise. If im going to use this only as FD or investment in bank shares etc or something like that.
Can someone guide me how i can retain maximum of the money and put it in bank FDs. The interest i will get from this itself is hardly sufficient to just graze by. Plz help me by giving me your valuable opinions.
CAclubindia
