Property sale proceeds to sons
Mother owns vacant land. She wants to sell and divide the proceeds equally to her sons.. What is the procedure and advisable legal formalities? What is taxable? Is there exemption if reinvested in property or construction?
Asked in Property Law from Coimbatore, Tamil Nadu
she should not divide proceeds equally among sons now . she can make a will bequeathing sale proceeds among her sons . once she gives sale proceeds during her lifetime no guarantee that sons will continue to take care of her .
she can reinvest capital gains received in another property . it has to be done within period of 3 years . .
If she is the owner of the land then she is at liberty to sell it and divide the sale proceeds in the proportion she desires. She can sell the land and make a will of the sale proceeds to ensure that her sons do not neglect her when she is in the evening of her life.
The reinvestment in another property within 3 years will entitle her to claim capital gain.
Usual expenditures are stamp duty & registration charges apart from 1% TDS of consideration price if it is 50 lakhs or above. If you are interested to reinvest the money, there are certain percentage of tax exemption as per income tax provisions.