Capital gain and taxability
This query is : Resolved
Quick Summary
20 August 2022
Mr.X has been accepting in bank and declaring rent income of a residential property in his personal ROI which was purchased in FY 2017-2018. Now in FY 2021-2022 the said property is sold for financing sons migration to foreign country for higher study and stay. Now when capital gain was required to be calculated, it came to knowledge that the said property's purchase and sale agreements are in the names of spouse and son but purchase was funded by Mr.X by borrowing loan in his name. The entire sale proceeds were received in sons bank account. Under the circumstances, who is legal owner, who and how capital gain to be declared. Please give references of sections, case laws etc.
20 August 2022
Mr. X's son and spouse are legal owner of the property, the capital gains to be declared in their ITR as per their share in the property.
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20 August 2022
Thank you sir for the reply. But what happens to the rent income then declared in Mr.X's ROI all these years? Would the same be assessed and taxed in legal owners hand again in case assessment happens? Because, spouse and son having GTI less than basic exemption were not filing their ROI.
20 August 2022
The tax re-assessment would not yield any extra tax liability, so in general, it may be pardon of.
20 August 2022
Thank you very much sir.
20 August 2022
My Pleasure...
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