Property gain tax

 Houses are a popular investment option. Long-term capital gains from selling a house get tax exemption if they are invested in buying or building a new house. The new house has to be bought one year before the transfer of the first house or within two years after the sale. The deduction allowed is equal to the actual investment or the capital gain, whichever is lower.

If you plan to use the gain to build a house, it has to be done within three years of the sale of the property. When you buy a plot to build a house, the cost of land is included in the construction cost. Even buying an under-construction property entitles you to tax deduction.

"One can buy an underconstruction apartment to save capital gains tax, provided its construction is completed within three years of the transfer of the first property," says Kaushik. If the new property is sold within three years of purchase or construction, the deduction is reversed and taxed as short-term capital gain.

Was Your father the owner of the property (till his death)?

If your mother, your brother and you jointly inherited the property,

on selling the inherited property, the LongTerm Capital Gains arising to each seller is to be separately computed,

and taxed in his/her hands.

Thanks Sir,

But the problem is , we (i.e. my brother & me )want to purchase the 2 properties at different  locations.

Thus we want to distribute the property amount in part & purchase the properties at different location.

In such case shall we need to pay property tax ?

Thanks

Thanks Sir,

Yes , My father was the owner of the property.

We want our mother will be owner of the property.hen after selling the property when we got the amount in favor of our mother she will distribute the amount between two brother & then we will purchase the 2 properties at different location.

In such case shall we need to pay property tax ?

Thanks