How to sell a property which is registered in 2 names but actually belongs to 3 person

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Naren

Vice President

31 Points Joined December 2015

Details: I have a property in Mumbai which is registered in my name and my brother's name. Actually this property belongs to both of us as well as my sister. Now we are planning to sell this property. We would like to know: 1) If my sister's name can be added in society before the sale? If yes, will my sister get income tax benefit since the original date of purchase? 2) If no, can we register the sale in 2 brother's name and then execute a family deed to transfer 1/3rd share to my sister? Will it be okay to offer for tax 1/3rd share in each of our income tax returns? 3) Any other better way to sell and divide among three of us? Thanks & Regards, Naren

Replies (2)

Nikhil Kaushik

Fellow CA

86871 Points Joined June 2009

yes, it can be added and yes she will get the benefits from day 1 but there is a problem...If you want to add your sister's name today, it would amount to gift and stamp duty shall have to be paid on the relevant stamp duty value.

now lets say you don't take this route, then you can share the income in any manner you wish to but the taxability of the gains shall be in your and your brother's hands only.

Naren

Vice President

31 Points Joined December 2015

Thanks for your quick response. I think stamp duty is only Rs.200 now on gift of immovable property. Also, it is actually not a gift but all three were entitled to the property but registration was done in 2 names only. So is there any other way so that sale can be registered with all three of us as sellers and we file income tax returns accordingly.