Income tax on sale of property owned by mother

Your mother is seller and would be getting proceeds from sale.

You may get clear opinion from a very able LOCAL senior counsel of unshakable repute and integrity specializing in tax matters/CA and well versed with LOCAL applicable rules/laws and having successful track record….and worth his/her salt …before initiating agreement to sell/sale …………..and show property related docs from beginning….for a considered opinion..

You may also post at group website of LCI;

CAClubindia

Your mothers should have paid capital gain tax of entaire amount after that may legal heire shared 

As you said, the property belongs to mother, then capital gains has to be calculated in her hands only.  If she distributes the sale proceeds, it would be termed a GIFT to you and your younger brother, which is not taxable.

Calculation of capital gains:  Sales proceeds has to be reduced by Indexed cost of acquisition.  If something remains in positive, then 20% of such amount is payable as taxes with surcharge and cess as applicable.

Taxes cannot be avoided and should not be avoided.  Government has given some benefits for saving tax. The best applicable deduction as I understood from you query is that your mother can invest maximum of Rs.50 Lakhs in capital gains bonds of NHAI which has a lock in period of 3 years.  This amount would be reduced from the positive amount as said above and then if any positive figure is left, taxes has to be paid on that as said earlier.