Tax implications of inherited house property

thanks for quick response ....

i didn't understand this statement

"compensation cannot be legally justified."  

and also if any tax implications to me for all these transactions??? 

After FS document, we do need to transfer property ?

Inheriting a residential property can have tax implications, especially when it comes to transferring the property to another legal heir or selling it. Let's address your questions one by one:

Tax implications for inheriting a residential property:

In India, inheritance of a residential property is not subject to any inheritance tax. However, if the property is sold in the future, the capital gains tax will be levied based on the fair market value of the property at the time of inheritance and the selling price.

Tax implications for taking over half of the inherited property and purchasing the other half by giving compensation to the second legal heir:

If the first legal heir takes over half of the inherited property and purchases the other half by giving compensation to the second legal heir, there will be no tax liability on the first legal heir for taking over the property. However, if the second legal heir receives any amount as compensation, it will be treated as income, and he or she will be liable to pay income tax on it.

Gift deed or sale deed:

If the second legal heir is willing to relinquish her part in exchange for a cash amount from the first legal heir, the best option would be to execute a gift deed instead of a sale deed. This is because a sale deed attracts stamp duty and registration charges, which can be substantial, depending on the state where the property is located. However, gift deeds are exempt from stamp duty and registration charges in some states, including Delhi.

In conclusion, inheriting a residential property does not have any tax implications, but if the property is sold in the future, capital gains tax will be applicable. If the second legal heir relinquishes her part in exchange for cash, it is recommended to execute a gift deed instead of a sale deed to avoid substantial stamp duty and registration charges.

thanks Sir for such a good explanation

in Delhi observed gift deed also costs 6% (https://eval.delhigovt.nic.in/)....not sure what exactly relinquish deed costs

while there is no sale or transaction involved, why we have to pay such a huge stamp duty

what should we do to get the title of residential property changed  without much cost....as its just inheritance and not sale or purchase

what if, one is unable to pay huge stamp duty??? can we still have right to sell property without transfer of title??