Hello friends,
My mother owned a house and she died intestate. The khata was transferred to the legal heirs, i.e., my father, me and my two sisters. We have subsequently sold the house and we intend to reinvest the entire sale proceeds (or almost all) in acquiring new property, so that we do not have to pay long term capital gains tax.
The issue now is, we have identified a plot to be bought from the Bangalore Development Authority (BDA). But the BDA says only father and son, or husband and wife, or father and unmarried daughter can register the site jointly. Since both my sisters are married, they wont be eligible for joint registration.
I would like to know from you learned people....can my father and me buy the plot jointly, then release/relinquish 50% share each to my 2 sisters (so that all of us become equal partners) and then use my sisters' funds to build the house? If this happens, can all the 4 of us get exemption from capital gains tax, assuming we follow the timelines of reinvesting?
