Collection of residential property Sale proceeds

We are three brothers and all the properties were in the name of our mother. In 2012 these were transferred to my youngest brother through a gift deed. We have an MoU registered regarding how to share the property when it is being sold to be divided equally between the four signatories.

Now my question is - the proceeds of the sale, how it needs to be collected. Is it wise to collect in the name of my brother OR Will it be beneficial if it is collected equally in the names of four signatories to the MoU?

Kindly advise me. more  

View all 16 comments Below 16 comments
That means that your father from his own income bought property in the name of mother ( which means gifted to mother) and mother being the sole owner, she can gift it to anybody as per her desire. Thus your younger brother is the rightful owner and has to pay taxes on capital gains that arise.f. If he wish to part some money with brothers, it amount to GIFT from one brother to another brother. MOU has no relevence in such properties transactions. more  
The purchase of property in the name of my mother by our father was entirely funded by his salary income. more  
It is good that their is no quarrel among brothers. This is now a days rare. Anyhow, since the mother got it from father, we have to see that the said money from which property was purchased which father gave to mother was from his own income or from family income. If it is from family's income the said property was purchased in the name of mother, then mother has no right to gift it to any son. It becomes a HUF property and you have to deal as per HUF laws. more  
Sale of property/meeting of Income tax/Capital gain tax on this transaction is entirely separate issue From "Distribution Of Money" among the brothers/mother as per MOU.The buyer will ignore the MOU & strictly go with the Gift deed & treat the younger brother as the owner of the property & will accordingly agree to make the payment to him ONLY & no one else.Since there is no dispute between the brothers,after receiving the sale money,he can distribute the money(minus each brother's share as Income/Capital Gain Tax for which he ONLY is liable) as per MOU. There is no other way in solving this tangle as Ownership & Capital Gain tax angle which can be ignored at the cost of Complicating the matter for the younger brother at a future date as only he & he will be answerable to the Tax authorities.The tax authorities are going to ignore completely the MOU. more  
Thank you everybody for the feedback. I would like to clarify one point here. There is no fight between us brothers. We have an MoU which is registered and where in it is agreed to share the proceeds of the sale in the ration of 25% each between four parties which includes my mother also. The said property was purchased in the name of my mother by my father. My question was: is it beneficial for us, if my brother collects the entire proceeds and then distributes it amongst us in the ratio agreed OR is it beneficial for all of us if the buyer of the property gives us four different cheques in the ratio we have agreed? None of us are interested in going to court or snatching away the others rights, which is the case these days. more  
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