My grandfather expired few months back and as per his will the flat where he used to live need to be sold off and each of his son and two daughters will get equal share of the amount from the sale of the flat. My cousin decided to buy that flat and he gave my mother and uncle the required sum of money because of the sale of this flat. This flat was purchased by grandfather in 1995 and it was bought by my cousin in 2013.
Now my question is, what will be income tax liability for my mother, uncle and aunt? If i understand correctly, it will result in long term capital gains and i need to make use of the following formula to calculate capital gains and then divide it by 3 ?
Long Term Capital Gain = Sale Price – Indexed Cost of Acquisition.
How much percentage of tax will be applicable?
It will be great if you can help me out. Thanks