Capital gain on transfer of property of joint holder

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2012 Dear all

Kindly guide me on the below case.
If a father possessing a property since 1950. (The property is belonging to Co-Operative Society act and
Also issued shares of co-op society).
While sale the property to third person, father has introduced his two sons name (both are self employed) in sale deed with PAN number and also mentioned that “these names are merely considered as per advice of advocate and they are not real owners of the property. We have mentioned their name to prevent future legal obligations or dispute to reclaim the property from purchaser by sons. Hence we have added the name while sale proceed”. After sale proceeds father has calculated capital gain in his tax return and also (sale price 86,60,000 dated 15.06.09) purchase property of Rs. 56, 00,000 against LTCG 53,78,432 (after indexation – 33,01,568). He has invested in two residential properties in the name of himself (Father) and another property for his elder son. But the second son whose name was in sale deed, father has given of Rs. 25, 00,000 out of this as gift. Now ITO disagree on these and he said that all these three should mention their individual share of capital gain on his return of income and the son who got 25, 00, 00 is liable to pay capital gain tax even his father has shown in his return.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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26 July 2012 You have complicated the matter. In fact there should have been 3 sellers then this problem would not have arisen at all for further discussion kindly write to ssunderagarwal@gmail.com

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