Dear Sir, Madam,
I am posting my query in this forum in order to get proper guidance and right advice. My in laws have no financial income yearly. My mother in law received a property as per registration value of 15 lakhs in december 2017. She had sold this property in May 2018 for 35 lakhs. The transaction amount of 35 lakhs came into her account. As the property is sold in less than 24 months (short time), i suppose she has to pay short term capital gain on 20 lakhs, which could be 4 lakhs if 20% or 3 lakhs if 15%.
She has no other property on her name and they have no financial income except this.
1. Do they have to pay tax on capital gain? mostly yes, as i have looked into lot of information
2. Is there any possibility to save this tax amount by investing in some funds or government policies?
3. Is there any possibility to buy a residential property before July 31st and divert all the amount to the new property purchase?
4. Opening an capital gain account to save the tax or total amount?
I would be glad to receive a response from this forum who have lot of knowledge and experience in this field.
Thank you in advance
CAclubindia
