My sister and Brother-in-Law brought the flat in Mumbai on 17th Oct, 2009 in 15 lacs.
They gifted the property to my Mother on 5th April, 2013. My mother paid the Stamp Duty and Registration Fee.
Now, my mother wants to sell her property.
I have few questions:
1. Is she eligible to sell the property?
2. If she sell the property now in 2014, will it be consider as LTCG or STCG?
e.g.
If she sells the property in 35 lacs, how much will be the tax.
a. Since it is not the Sale Deed, will the purchase date be considered as 17th Oct, 2009 and she has to pay tax of LTCG (around 20%) on 20 lacs profit? it means 2 lacs.
b. If not a, will the purchase date be considered as 17th Oct, 2009 and she has to pay tax of STCG (around 30%) on 20 lacs profit? it means 6 lacs.
c. If not a and b, will the purchase date be considered as 17th Oct, 2009 and she has to pay tax of LTCG (around 20%) on entire 35 lacs profit? it means 7 lacs.
d. If not a,b and c, will the purchase date be considered as 5th April, 2013 and she has to pay tax of STCG (around 30%) on entire 35 lacs profit? it means 10.5 lacs.
Please let me know the rule and section in the law, which reflect this case of property transaction
Best Regards,
Ajay
