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POSTED BY ON November 27, 2012 10:49 am ONE COMMENT
My mother was gifted a land in late 1980s by her father – but it was directly bought in my mother’s name and the registered deed shows my mother as the legal buyer. A house was also build on the same land in 1990. Now, she wants to sell it – both the house and land! In this case, what would be the income tax applicable to her? She is a home-maker, so although she posses a PAN card but has no income.
Also, if you can advise any way to reduce the tax burden.
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Income has no role to play here , if she sells the land + house , she will get some money , that would be selling price and whatever was the buying price or the cost of construction will become the PURCHASE price , now she has to calculate the Capital gains out of this , which is explained in this article https://www.jagoinvestor.com/2009/05/how-to-calculate-capital-gains-and-what_7801.html
The best thing she can do to save is
Option 1 – Invest the Capital Gains in some other residential project
Option 2 – Invest the capital gains money in NHAI or REC bonds (Sec 54E)
Manish