42-Year-Old in Navi Mumbai Seeks Advice: Gift vs. Joint Will for Inherited Property

Ans: It is always better to get the property transmitted in your name with registration at the registrar's office. This will avoid difficulties for your family.

Ans: In case of death, legal hair becomes owner of property, unless they surrender their rights in the said property. Please contact consultant for more information.

Ans: 1. A NOC from your mother and brother will certainly help for sale and avoiding future disputes. NOC is a simple process with no major complications.
2. Transferring the flat from you to your mother will entail a stamp duty cost depending upon where the property is located.
3. Selling in your mother's name will increase the slab limit by certain amount so that is better but stamp duty as referred above will be applicable.
4. You can either reinvest in a residential property or NHAI/ REC bonds.

Please take your CAs advice before moving ahead.

Ans: 01. In this case, you would be subjected to LTCG (Long Term Capital Gain) tax.
02. To work out LTCG, you should reduce its Cost from the Sale proceeds (Rs.165.00 lakhs).
of property, which was costed to your mother.
03. However, following details may help you to assess your tax liability.
Under present provisions of Income Tax Act, you may opt any of the options (Long Term
Capital Gains), as under :
(a). Tax Rate 12.50% without indexation or
(b). Tax Rate of 20% with Indexation.
04. You may calculate your tax liability under both options & may opt for the tax regime, where tax liability is minimum.
05. To avoid tax, you may invest in purchase of some house property. Exemption available would be minimum of Cost of new house property or the LTCG, which ever is less.
06. You have the option to purchase Capital Gain Bonds of NHAI etc., for tax saving.
07. Most welcome for any further clarifications. Thanks.