Capital gain query of property sold

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This discussion addresses capital gains tax queries for two senior citizen brothers who jointly sold a property. It clarifies that both owners are liable for capital gains tax, even if one brother lacks a bank account and the buyer pays the full consideration to the other. The possibility of using the sale proceeds to purchase another home in a spouse's name is also considered.

CA Parul Saxena

CA Parul Saxena (Querist)

14 June 2024 2 Brothers both senior citizen sold a property in joint name to a single buyer...whether consideration is mandatory to give both the owners as 1 brother doesn't have Bank account? And consideration received if used to buy another home in the name of wife is it possible? What are the capital gain tax implications in this case?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

14 June 2024 Yes, the buyer would prefer to give consideration amount to both be jointly or individually.
Both brothers will be liable for capital gains tax in equal shares.

CA Parul Saxena

CA Parul Saxena (Querist)

14 June 2024 If one of them do not have bank account whether one brother can take full consideration?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

14 June 2024 Yes, but tax liability would not get transferred.
Need to check if buyer is ready to give consideration to only one owner.

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