Capital tax for senior ciizen

Milind Kalyankar (Querist) 08 June 2015 This query is : Resolved
Hello,

My father had purchased flat in 1992. He died around 2007. I have one brother and three sisters. We, both brothers, has not contributed at all during purchase of this flat. We were still undergoing education during that time. After his death, my three sisters removed their rights from property with proper agreement. So now my mother has first name in property followed by my elder brother and then me.
We are planning to sale this property now. So will this sale affect me or my brother from Income tax perspective though we want to give and submit all money in my mother's bank account. She is at present 72+ age.
Also as per capital gain tax rules, I guess we will have around 2 Lakh as capital with this sale. So will it get exempted for my mother being senior citizen or we need to pay capital gain tax on this? If yes, how much - 10% or 20%?
Please advise and thanks in advance.

Regards,

Milind Kalyankar

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R.K Nanda (Expert) 08 June 2015
consult tax lawyer.

Anirudh (Expert) 08 June 2015
Capital Gains tax has nothing to do with the age of the seller.

Long Term Capital gains = sale consideration (minus) indexed cost of acquisition which will include the cost of stamp duty paid (minus) indexed cost of improvement, if any, with supporting proof, (minus) expenses incurred in selling the property.

On the long term capital gain 20% tax is required to be paid.

This can be avoided by depositing the entire amount of capital gain (not the sale consideration) into Bonds (the bonds will earn very less interest) issued by National High Way Authority or Rural Electrification Authority.