Hello. I would like to know of steps to be taken and documents to be accumulated in case a deceased widowed lady left behind a property intestate, and all four adult children are legal heirs. Furthermore, the children have mutually agreed to sell the property and share the proceeds as per law, to purchase individual houses for themselves. My query is also regarding the taxes applicable on each of the children post selling and distribution of the property amount. Important to note here: the society where this property is located, has not undertaken conveyance yet, so would this pose a legal problem in obtaining legal heirship of the property by the surviving children/heirloom? Expecting from you all distinguished members a legal-point-of-view as well as taxation-POV on the matter, please. Thx. A. W. Khan, Mumbai.
Hi. Thx for the reply. I understand that the property first needs to be transferred to the names of heirlooms as joint owners and can sell it jointly. Correct (and they are going to do just that). But, at the time of selling, will the buyer provide four seperate cheques (totalling the decided division amount) to each of the heirlooms? I doubt this if this is possible. In such a case, how do the heirlooms sell the flat or convince the buyer for four seperate cheques, and also address the individual tax issues incumbent. What is the law and legal route to be followed regarding joint ownership and subsequent selling of the property?
1. IRRESPECTIVE of the absence of Deceased's WILL document, the Four Legal Heirs can sell the property WITHOUT first getting transferred /mutated, by "JOINT" signatures as "Consenting & Confirming Parties", in the Sale Deed. This will require relevant document proof of being a Legal Heir of the deceased. No need for any Legal Heir Certificate or any other document.
2. The Sale Deed can contain strategic clauses of EQUAL payment terms to the Four legal heirs, who would show their respective received amounts in their Income Tax Returns, which will be completely Tax free, since there is no income tax on inheireted property.
3. Selling /Buying of Self-Acquired property, is in no way connected to the "conveyance" of the Society, since society can deal only with its Society's membership and not with Property's Title-Ownership.
If the inherited property is jointly held by the heirs without selling there will be no capital gains tax. If it is sold jointly and converted into cash each of the heirs will be liable to pay capital gains tax.