1) Original Buyer (A) (late husband of present owner/father of present owner) as mother and son both are now co-owners now) bought 4 Katha 10 Lecha land on 04 Sept 1981 for a consideration Amount : Rs 4000 .
2) On death (11May, 2009) of original buyer (A) land transferred to his legal heirs-wife (X) & son – (Y) on 21.5.2011.
3) X & Y Sold part of transferred land measuring 1 Katha 1 Lecha on 8 Jan 2014 for an amount Rs 12,60000. This amount paid by cash.
4) Both mother (senior citizen) (X) and son (Y) of the deceased are not taxable- below tax slab (less than 2 lakh income)
Questions
1) What will be the capital gain tax on this amount (12,60,000). Whether it will be short term or long term capital gain tax (will it be short term because they sold the land within 3 years from the time it was inherited or will it be long term since it is inherited property? If short term / long term how much will be the tax on X & Y?
2) For LTCG, can we calculate tax without indexation benefit? If we do not want to take advantage of indexation benefit (as indexation benefit will be low) then what will be the tax rate, and whether it will be added to my income and taxed according to slab or the LTCG will be taxed seperately at 10% wihtout indexation benefit?
