1) When did your mother purchase the property?
If she held the property for more than 36 months( now reduced to 24 months ) it would attract long term capital gains
3) LTCG is exempt for an individual on sale of a residential house property, if such gains (not the whole consideration) is utilised to purchase or construct another residential house.
4) It should be noted that the new house should be purchased within one year before or two years after the date of transfer. In case of construction, the new house should be constructed within three years from the date of transfer
5) in your case sale proceeds have been transferred in your wife name and property purchased by your wife in her name
6) As per provisions of Income Tax Act, 1961, any long term capital gains arising from transfer of any capital asset would be exempt from tax under section 54EC of the Act if: The entire capital gain realized is invested within 6 months of the date of transfer in eligible bonds. Such investment is held for 3 years.
