Sale of property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2015 Mr X and Mrs. X buy a property in joint ownership in the deed. But all the money is paid is by Mr x bank account. Now there is sale of property ? If i want to pay only to Mr X for purchase of property, what should i do?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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14 December 2015 since Mr X and Mrs X are joint owners in property documents it is not possible to pay sale consideration only to Mr X. But one way to do that is that Mr X may obtain a power of attorney from Mrs X regarding sale of her share of property by Mr X and receiving sale consideration also by Mr X.

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Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2015 If there is relinquishment deed, then will the relinquishment be treated as capital gain of mr X

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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22 July 2025 Good question! Here's how it works:

Relinquishment Deed means Mrs. X transfers her share in the property to Mr. X (or vice versa) without consideration or for some consideration.

Tax Implication for Mrs. X:
The relinquishment is treated as a transfer under Income Tax Act, so Mrs. X will have to pay Capital Gains Tax on the relinquishment, based on the share of property transferred and the consideration received (if any). If no consideration, it’s still a transfer, and capital gain is computed accordingly (sometimes considered as “without consideration” transfer and may attract tax at the fair market value).

For Mr. X:
He will acquire the additional share at the cost paid by Mrs. X, so his cost of acquisition for the additional share is the amount paid to Mrs. X under the relinquishment deed.

So, Yes, the relinquishment is a taxable event for Mrs. X, and capital gains tax will apply to her on that transfer.

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