08 December 2012
I had purchased a property in jointly with my wife in 2004 and sold the same in september 2010.i have paid from my pocket for the property and my wife did not pay anything. i didnot file my returns for FY 2010-11 and my wife filed returns in match 2012. The poperty sale was not declared. In august 2012 wife has recieved a notice under section 143 and 142 asking for details of all the bank accounts and properties sold and bought during the FY 2010-2011. Mean while i have purchased a new property in july 2011. reinvesting around 80% capital gains. What would be the best way of addressing this issue.
09 December 2012
The best way to address this issue in my opinion is to file your income tax return for the FY 2010-11 at the earliest declaring the property sale transaction. as per your query it seems that you might be eligible to claim exemption u/s.54,54F,54EC depending upon fact of the case and you may have to pay much less tax since you have already invested in another property. If your wife is not involved in any of the sale/purchase transaction it would not cause any difficulty by receiving notice u/s.143 and 142. However you have to prove that the payment for purchase of earlier property had been made only by you,.
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