A residential house was purchased in 1953 and redeveloped in 2012-13 by father who died in 2013. Mother became the owner by way of relinquish deed executed by children in her favour.
Mother before her death in July 2020 entered into an Agreement to sell the property for (say) Rs.100 Lac and also received Rs.35.00 Lac during FY 2019-20 as first and second installment without deduction of any TDS by purchaser
Each of the legal heirs, inherited 20% share in parental residential house after the demise of mother.(Father not alive). All the legal heirs agreed to honour the “Agreement to Sell” entered by mother and will execute the Sale deed in FY 2020-21.
Long Term Capital gain on the entire property works out to about (say) Rs.40.00 Lacs.
Questions are
1. Do we reflect the receipt of Rs. 35 Lac in mother's IT Return for FY 2019-20. If yes, under which head.
2. How much TDS should be deducted by purchaser while making the balance payment of (Say Rs.13 Lacs) to each Legal heir and deposited with Tax authorities on their behalf.
2. What Sale value and cost of property with improvement and indexation is considered in I Tax Return by each Legal heir. Is it 20% of all values for every body? since there is no provision to show the consideration and cost of property at full value and then calculate one's share of Capital gain.
3. If 20% of Total value of property is taken every where by each of Legal heirs then How the records will match with Records of Sub Registrar Office who will register the sale deed for 100% value.
Thanks.
