My mother will be selling an ancestral property which will be in her name in a month or two through mutation , She already has 3 flats in her name jointly with my father. is there a way she can save tax on it?

Ans: Tax payer transferring land after holding for more than 24 months will be chargeable to tax as Income from Long Term Capital Gain. To save the tax, tax payer option to invest sale consideration in new house property (if tax payer don't have more than one house property). Tax payer also have option to invest in specified bonds.

Ans: It is advisable to take valuation report from approved valuer who will make report considering ready recknor value decided by concerned gov authorities as on 1 4 2001. Sale consideration reduced by indexed value of FMV as on 1.4.2001 will be capital gain.

To save tax, you can acquire house property and get exemption u/s 54F. As per section 54F, if you want to buy a residential house property from long term capital gain from sale of shares then you must buy the residential house property 1 year before or 2 years from date of such transfer of shares or construct the house property within 3 years from date of transfer of such shares. If amount can not be utilised before filing return then amount should be kept in CGAS.

Ans: 54 EC Capital Gain Tax Exemption Bonds of REC and PFC

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