23 June 2022
In case of property sold by joint owners (brother & sister) - in the deed of sale which was registered a sum of Rs 21 lacs was paid to the sister and a sum of Rs 69 lacs was paid to the brother as per their understanding. The total sale value being Rs 90 lacs. The details of payment to each one of them by the buyer has been clearly stated in the deed as above. Banks records also show the same. 1) Will LTCG be calculated proportionately ? 2) In 26AS under details of SFT transactions (SFT-012 - sale of Immovale Property) the amount shown is Rs 45 lacs - it is being shown 50% of total sale value for each. But this is not true - do I still calculate the LTCG proportionately as actually received amounts of Rs 21 lacs and Rs 69 lacs?
23 June 2022
In my opinion LTCG should be calculated on the basis of ownership i.e. 50-50% since the sale deed mentions only the payment made individually to both of them but it does not mention the proportion of ownership. In the absence of proportion of ownership specified, it is assumed to be 50% each and accordingly capital gains should be calculated irrespective of the payments received since the payment to be received is their mutual understanding and in any way the property is in the joint name.
08 July 2022
The LTCG will depend upon the share in the property by both parties. The share must be written in the purchase deed when the brother and sister purchased the property or you can check the encumbrance certificate.
09 July 2022
The property is inherited and there is no will or any document which says anything about the share in property between the brother and sister. In such a situation I believe it will be 50:50 between the two.
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