We want to sell a property which is in my mothers name since 1989. We are 3 brothers and 1 sister. All are married. We intend to buy 2 or 3 new properties after selling this property. The problem is, we will get tax exemption only in one property and rest we will have to pay the tax which comes to a sizable amount. The other options are:
1. Mother gifts us this property through gift deed, and then we sell it and reinvest in properties in our names, and thereby get exemption from long term capital gain tax. But the biggest question is, can we sell the property which is acquired through gift immediately? Will the timing of selling of this property be questioned by I.T dept?
2. Can we do this through family settle deed? Again the same question arises about the timing of selling of the property immediately after making of the deed.
3. Somebody suggested to sell this property with mummy and we all 3 brothers as joint owners through some deed or declaration or may be through HUF. So that every one will get their individual shares and the reinvest accordingly. But we are not aware about the process of this option. How to sell this property through HUF, when we dont have any HUF bank accounts or PAN nos?
4. Is there any other viable and safe option under the law, whereby we can save the tax or reduce it considerably?
The biggest problem is that, our need is to sell this joint property and reinvest in individual properties immediately with in few days, working any of the option saving maximum tax and and the same time be assured for not falling into any problem or scrutiny by I.T dept in the future. Please help us resolving our problem as soon as possible.
