We, 3 siblings just concluded the sharing of our ancestral property (from our mother's name to our names) in Bangalore. One particular plot was to be sold immediately. So, we all agreed to transfer this entire plot to the eldest brother and he would share the money with others equally. The sale was concluded within a year of being registered to his name and he shared the sale money with all 3 of us. Does this sale also fall under long-term capital gain ? If yes, does it apply for all of us ?
- In case of inheritance of the property, period of holding and cost of acquisition in the hands of previous owner is considered while calculating capital gain. Assuming property was purchased by mother more than 24 months back. Sale of share inherited from mother would be considered as LTCG
- Sale of share purchased from brother's would be considered as STCG
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