Inheritance & FY of Purchase Claification

Below is the case in chronological order, with the questions at the bottom: • In 1980, a person joined a corporate group housing society, Delhi. • In 1985, he paid Rs. 50,000 first payment towards one apartment in the corporate group housing society allocated by DDA. Over the years, he paid Rs. 8 lakhs towards construction costs in several installments. • In 1994, he received share certificate. (Document – Share certificate) • In 1996, Lease deed was registered. • In 2003, he got possession for the flat (Document – Possession letter) • In 2010, the Lease deed was converted into a Conveyance deed and registered at Consideration value of Rs. 52,000 and Stamp duty of Rs. 3150. (Document – Conveyance deed) • Through 2014 to 2016 – we paid Rs. 3 lakhs towards the maintenance of the flat, most of which was paid to society in installments. • As a father, he wanted to give the property to major married daughter as her inheritance and has drawn a Power of Attorney in daughter’s name in 2013 for this flat. (Document – PoA) • In 2017, Daughter would like to sell this property valued at Rs. 1 crore and invest in a land or residential property in her name in Bangalore. The Sale transaction will be fully white. Considerations: 1. Father has been an NRI and living in Middle East for the last 35 years. He is retired and will move back to India in 2017. He has a PAN card, Aadhar card and Ordinary Indian saving account, no NRO account. As he was not eligible to pay income tax, he has never filed tax returns, and does not have any taxable income in 2017. 2. Daughter has recently moved from India to Middle East. She has an NRO account in Bangalore. She has filed her tax returns every year since 2013, and does not have any taxable income in 2017. Queries: 1. In order to pay minimum capital gains tax and considering the next investment should be in the daughter’s name, please let us know what the best suitable option for the sale transaction as illustrated below: a. Should the property sale registration be done by daughter using PoA, amount transferred to daughter’s ordinary/NRO account, and new property be bought in daughters name. OR b. The property sale registration be done by father, amount transferred to father’s ordinary account, and new property bought in daughter’s name c. The property sale registration be done by father and new property bought in father’s name and later transferred to daughters name by paying inheritance tax. 2. In order to reduce TDS on sale registration, should the sale go through in the Father’s name as Ordinary citizen (1%) or Daughter’s name as NRI (10.3%)? How can this TDS amounted be refunded? 3. In case daughter decides to buy a Commercial property with the full sale value. a) What should be considered as the Financial Year of Purchase and Investment amount in order to calculate indexed Capital Gains tax? b) And what would be the approximate Capital Gains tax amount to be paid? Thank you for your time