How to avoid property tax?

I have the following query: Our 3 families (father, brother & myself) are staying in a flat worth 14 crores which is in my father's name Due to shortage of space we plan to sell this flat and take 2 separate flats for brother and myself. Our parents will stay with one of us. We plan to sell this flat within the next 2 years. We plan to purchase 2 flats of approx 4 crores each where father will be common joint owner for both. Second holder will be my brother and myself My father wishes to build a house at our agricultural land in Maharashtra itself worth 50 lakhs in name of father and mother Planned usage of the sales proceeds: 14.00 crores existing flat ============ 1.00 crore for commission / transfer / etc 8.00 crores 2 new flats 0.50 crores for agricultural land house ----- 9.50 crores 3.00 crores tax saving bonds ----- 12.50 crores ===== Amount subject to Capital Gains Tax 14.00 crores - 0.50 crores purchase value (after indexation) -12.50 crores new property and tax saving bonds (as above) ------ 1.00 crores 30 lakhs as tax @ 30% 70 lakhs in hand after tax In case the above calculations are incorrect, kindly correct them My Queries 1. What would be the expenses on sale of flat - transfer fees, stamp duty and other govt expenses ? 2. Would the expenses spent on furnishing the new flats be eligible for deduction from Capital Gains Tax? 3. Would it be advisable to add our wives and children's name as co owners keeping in mind future taxation of sale of the new flat? 4. In case we do not want to invest in tax saving bonds and opt for another property which will be rented out, will this be considered for deduction for capital gains? 5. Would it be advisable to add our mother also as joint holder in all properties? 6. As there would be multiple residential properties in my father's name, what would be the status for them as per Income Tax laws? 7. Would it be advisable to add joint owners to the property before selling it? (Only from the taxation point of view) In case the new tax laws come in force at the time of sale, what would be the new tax calculation for the same?

Asked by     Vivek (1) in category Property Taxation Queries  on Nov 19 at 4:41 am