As per your query what I understand is that your sister and her husband had purchased a flat on 17.10.2009 for a consideration of RS. 15 lacs. ON 05.04.2013 they gifted the said flat to your mother (being the mother and mother in law of donors) by a registered gift deed. Now your mother being the owner of the flat wants to sell the flat for an expected consideration of RS 35 LACS.
- Yes, she (your mother) being the legal owner of flat is eligible to sell the property.
- If she sells the property in the year 2014, the gain earned on transfer of flat shall be considered as LONG TERM CAPITAL GAIN and taxed accordingly. As per provisions of sec 49(1) of the I T ACT 1961 IN CERTAIN SPECIFIC CASES / TRANSACTIONS the date of acquisition by the previous owner (in your case your sister and her husband) is to be considered as the date of acquisition for the transferor (your mother) .
- In case of your mother the gain shall be treated as long term capital gain and the capital gain (i.e. the gain after reducing the indexed cost of RS. 15 lacs as in the year 2014 ) shall be taxed @20% as per provisions of sec 112 r.w.s 45 of the Income Tax Act 1961 of the I T Act.
- The date of acquisition in your case shall be 17.10.2009 as explained herein above.