55-year-old inherits property, wants to know tax implications of Rs. 150 lakh sale

Ans: Cost of original owner is relevant factor. If same is not known or acquired by original owner before 1.4.2001, it is advisable to get valuation as on 1.4.2001.

Further, indexation benefit is available on long capital asset. For which you can use income tax calculator https://incometaxindia.gov.in/Pages/tools/indexed-cost-of-acquisition-or-improvement.aspx

You have to pay tax @20% on Gain (Sale minus Indexed cost)

Ans: I understand that you got flat in inheritance as legal hair as sole owner of property for income tax purpose. In case entire capital gain amount is invested in another property as per specified conditions, no tax on gain amount of property.

Further with reference gift deed, tax will not depend on execution of deed, however, it is advisable to execute gift deed.

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.