Sale of flat

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Sat (Querist)
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07 December 2012 I and my wife jointly owned a flat which we have now sold. All payments were made from joint account and loan were obtained jointly. We have shown the ownership as in AY FY13 returns 75:25 in my favour. The sale proceeds have been received 75% into joint account and 25% into sole account of my wife. I am planning to show capital gains in the ratio of 75:25.

Please advise if this is in order. Do I need to create any documentation for the ownership share? My wife is housewife though she has been filing IT returns for rent and other income since last 3/4 years.

@VaibhavJ

@VaibhavJ (Expert)
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08 December 2012 Hi

How can you prove ownership was in ratio of 75:25.

To prove you need to show banking transaction from each individuals a/c in same ratio.

Also it wud have been great help if same wud have been mentioned in purchase agreement.

Thanks//Vaibhav
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Sat

Sat (Querist)
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05 March 2013 Thanks Vaibhav for your guidance. However, given the facts of the matter, do you suggest we show the income split 100% in my name or 50:50 between me and my wife as you do not like the idea of 75:25?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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22 July 2025 Thanks for sharing the details. Here's how you can handle the **capital gains splitting** on the sale of your jointly owned flat:

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### Key points to consider:

1. **Ownership Proof:**

* The Income Tax Department requires **clear proof of ownership ratio** if you want to claim capital gains split other than 50:50.
* Proof can be from:

* **Purchase deed or agreement** specifying the ownership share (e.g., 75:25).
* **Bank statements** showing payments made in the said ratio from your and your wife's accounts.
* Loan documents reflecting the share of loan taken by each party.
2. **Current Situation:**

* If the **purchase agreement or title deed mentions joint ownership but not the exact ratio**, the default assumption is 50:50.
* Since you said the payments were from joint account and loan jointly taken, but the sale proceeds are split 75% in your account and 25% in your wife's account, the ownership ratio in your tax return should ideally reflect the **actual ownership as per deed or proof**.
3. **What to do if no clear documentation for 75:25?**

* If you cannot produce documentation to prove 75:25 ownership, the **Department will likely treat it as 50:50**.
* Hence, the safe and straightforward approach is to show **capital gains split 50:50**.
4. **Wife’s Income & Filing:**

* Since your wife has been filing IT returns, reporting her share of capital gains income is appropriate.
* Even if she's a housewife, she can be shown as a co-owner and income recipient as per share.

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### **Recommendation:**

* If you **have documentation (purchase deed, payment proofs, loan papers) supporting 75:25 ownership**, you can show capital gains split accordingly.
* If not, show it **50:50** to avoid scrutiny or complications.
* No additional special documentation is mandatory beyond the purchase deed and bank statements, but keeping these ready is essential in case of inquiry.

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### **Summary:**

| Ownership Proof | Suggested Capital Gains Reporting |
| ----------------------------------- | --------------------------------- |
| Purchase deed/loan/bank shows 75:25 | Report gains 75% you, 25% wife |
| No clear documentation | Report gains 50:50 |

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If you want, I can help draft a clear summary for your ITR or a statement of ownership for your records!

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