Capital Gain Tax in case of Division of Inherited Property

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  1. Sunil Kapkar

    Sunil Kapkar New Member

    My mother received Rs. 36L in March 2013 after selling property of her (unmarried)brother after distributing among other sisters, out of this amount she given some amount to her daughter i.e. my sister, i have one brother also. My query is whether this amount(Rs. 36L) will have to be distributed equally among we three or at mother's discretion and second question is what is capital gain tax liability in both cases i.e. before distribution and after distribution among we three , can capital gain tax be saved if the amount is invested in property within expiry of 2 years of receipt .
  2. rudrabose

    rudrabose Active Member

    1. It is entirely the discretion of the mother regarding how much amount should she distribute to each child. It may or may not be equal.
    2. Tax will not arise in the hands of the person who is receiving this amount as gift. However, tax will arise in the hands of the original seller of property.
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