Tax liability for widowed senior citizen's house sale

Skinny Lizard (Manager) (24 Points)

15 April 2012  

Hi,

My maternal grandmother who is presently 85 and a widow has been residing in a house she recieved from her father as a wedding present in 1940-1941.

She has sold her house to a neighbour for Rs.50 lakh. One payment of 28 lakhs was recieved in Aug 2011, which was used to buy an apartment of Rs.32 lakh in her and my mothers name.

She will recieve another payment in May 2012 of Rs. 22 lakh.

i was wondering what would be her tax liability/capital gains be & what she could do with her money to minimize her liability.

thank you for your time in advance.

skinny.