Tax Expert - Answered on Dec 07, 2023
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It is a good idea to have her portion bequeathed to you in a will, if there are any other successors apart from the two of you so that it does not create an issue for you in the future.
As for your follow-up questions:
a. Your dad needs to make the investment of Rs 1.2 crores to save his capital gains on reinvestment.
As for the balance amount, you can decide the split.
If you are only showing Rs 0.3 crores in your mom's name, you will save registration cost only on this amount.
This is something that you need to keep in mind.
b. You need to pay TDS in the same ratio as your holding.
Your dilemma of having a lower tax saving in your mother's name is what I have also pointed out in point a, above.
One has the option of your brother-in-law gifting Rs 0.7 cr to your mother through your sister (his wife) for her to contribute Rs 1 crore.
Subsequently, after some time, your mother could gift her share to your father and sister and she can take an exit.
However, I am not sure it is worth taking the effort of doing all of this to save Rs 2 lakh on a property worth Rs 3 crores.
There would be some cost of gifting and registration of the gift which will further reduce the benefit.
You need to take a decision of how you would like to go about it.
I would expect that your father would anyway be saving more than 2% in his capital gains tax arising out of his earlier property sale by reinvesting the proceeds into the current property under consideration.
The second option seems to be the most practical even though there is an additional payment made. One could claim a refund of this additional amount or adjust it with tax payable.