Hello Sunil ji,
I am kedar & age 61, asking a question regarding the taxation on the amount of inheritance to my wife.
After death my father in law (sasur ji) few years back,
My mother in law (my sasu ma) had taken a decision regarding the agricultural land in their small town, which was purchased by the grandfather of my wife (father of my father in law) is develped and made it in the NA plots as per town planning scheme.
these plots are now ready to sale.
My sasu ma want to disribute the amont sold of these real estate plots., to her three married daughters including my wife.
sir, here please guid us, regarding the amount recieved to my wife through her
mother's house, is liable for any tax like capital gain or it will be treated as gift tax free amonut from mother's house as a stri-dhan (स्त्री-धन) and treated a tax free inheritance amont from her parants.
Ans: Hi Kedarji
Based on your question, apparently on property records, your mother-in-law is the owner of the land. I do not wish to get into the legal heirship aspect of the land post your father-in-law's demise and hence i would restrict my answer within the perspective of your query.
As your MIL is the legal owner and she is the person selling the land, she will be the person liable to tax for the capital gain arising on sale of the NA land.
The distribution of the net sale proceeds to the 3 daughters could be treated as gift backed up with the relevant paper work such as executing the gift deed etc., to ensure that there is no further taxability to the 3 daughters