My father sold his ancestral property in Odisha in Oct 2012. The deal was for Rs. 17.5 lakhs. The purchaser paid Rs. 17.5 lakhs by cheque to my fathers account. The land was in my mothers name. I was not present during the registration and the purchaser made a sale deed for Rs. 3.5 lakhs as per Government prices. My parents were ignorant about the implications.
1. Now since my father received Rs. 17.5 lakhs by cheque, is he supposed to pay capital gain tax even if the sale deed is only for Rs. 3.5 lakhs?
2. If my father invests the money to buy a property in my name in Mumbai, will he be exempted to pay capital gain tax? In such a case should the new property be made in his name.
1. Now since my father received Rs. 17.5 lakhs by cheque, is he supposed to pay capital gain tax even if the sale deed is only for Rs. 3.5 lakhs?
2. If my father invests the money to buy a property in my name in Mumbai, will he be exempted to pay capital gain tax? In such a case should the new property be made in his name.