Is capital gain tax applicable on sale of property which is transferred to me by will deed.

Long-term capital gain on property sales is taxed at a flat rate of 20% with indexation benefits available.  However, query this in CAclubindia or consult a local CA for better guidance.

If the property was held for more than 24 months (2 years) (including your father’s holding period), it will be a Long-Term Capital Asset (LTCA).

Long-Term Capital Gains (LTCG): Taxed at 20% with indexation benefit + 4% cess (effective ~20.8%).

Since the property was mutated in joint names, the sale proceeds will be split between you and your sister in the same proportion as ownership.

Accordingly, each of you will compute your own capital gains separately and pay tax individually.

Capital assets such as land, building and house property shall be considered as Long-Term Capital Asset if the owner holds it for a period of 24 months or more (from FY 2017-18). 

In case an asset is acquired by gift, will, succession or inheritance, the period for which the asset was held by the previous owner is also included in determining whether it’s a short term or a long-term capital asset. 

Taxpayers can get an exemption from long-term capital gain from the sale of house property by investing in up to two house properties. If they invest in two house properties, the capital gain on the sale of house property must not exceed Rs 2 crores.

Consult a local CA for specific question in your case.