My wife is one of the three legal heirs to her granmothers property since her mother died. Now all 3 legal heirs have agreed to sell the portion of their property for a consideration of 52 lakhs for which the official consideration is Rs.1940000/- which if shared equally among three heirs will it attract capital tax. The actual consideration is something else and my wife will get Rs.1853000 in cash How to bank that money? Is investment in another property the only option ?
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Tax on capital gain on inherited property
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In case of inherited property whihc becomes the property of the legal heirs after teh death of the owner, the sale procceds from teh sale of teh property shall be distributed equally among the legal heirs. The Capital Gains tax would attract in case of each of the legal heir. The amount as stated in the sale deed would finally be considered as the actual sale consideratio & tax would be levied on this amount only. For any cash received it si upto the persons receiving the money of how to make the best use of it wihtout attracting any tax on it if it comes up in the eyes of the AO.
The capital gains arising on the sale need not necessarlly be invested in hosue property only. the same can be utilized by purchaseing the bonds issued by NHAI or REC upto maximum of Rs 50lacs only within six months from the date of sale. So each of the legal heir can invest the CG arising on his part in the bonds.
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