Joint Purchase of a house

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rajiv (Querist)
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01 May 2011 BZ(aged 35) Purchases a house for 30 lacs jointly with his mother.BZ pays for the house from his savings.What are the issue Income Tax department can have on such purchase.Kindly reply in detail all aspects.What sort of queries IT may have regarding such transactions?

CA SAURABH GARG

CA SAURABH GARG (Expert)
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01 May 2011 There may be only following query regarding this purchase from you.

1)What was the source of money?
2)Whether you have file your income tax return related to this saving?

then you have to submit proof related to your income tax return related to savings.

But there is minor chances to ask these questions.
The questions will mainly raise when you sold this property and not shown in your income tax return or shown but undervalued.

rajiv

rajiv (Querist)
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01 May 2011 Thanks.
Two more related queries.
1. If the house is let out for Rs. 25000/-per month.Can the rental income be split between BZ and his mother for Income Tax Purpose.Assume that rent is received in their Joint account.
2.After 5 years if house is sold for Rs.50 Lacs and Capital gain is 15 lacs,can the sales proceeds be split between BZ and his mother equally after paying tax on capial gains .

rajiv

rajiv (Querist)
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02 May 2011 Pl reply.I am awaiting yr response.