Sale of residential house and re-investment
This query is : Resolved
14 April 2014
My query is as follows
An individual named Mr. A had invested 1 crore in a residential house in 2008 and the agreement was made in his name. However the amount was contributed by his other friends also but their name was not mentioned in the agreement. The share was as follows:-
Mr. A - 40%
Mr. B - 30%
Mr. C - 30%
The amount was contributed by his 2 friends in the above ratios to Mr. A who in turn paid it to the builder
The property was eventually sold in 2013 for 2 crores and amount was received by Mr. A. and he gave his 2 friends their share.
Now what will be the calculation of capital gains tax? Will it be taxable only in the hands of Mr. A or it will be taxable in the hands of his other friends too?
An individual named Mr. A had invested 1 crore in a residential house in 2008 and the agreement was made in his name. However the amount was contributed by his other friends also but their name was not mentioned in the agreement. The share was as follows:-
Mr. A - 40%
Mr. B - 30%
Mr. C - 30%
The amount was contributed by his 2 friends in the above ratios to Mr. A who in turn paid it to the builder
The property was eventually sold in 2013 for 2 crores and amount was received by Mr. A. and he gave his 2 friends their share.
Now what will be the calculation of capital gains tax? Will it be taxable only in the hands of Mr. A or it will be taxable in the hands of his other friends too?
15 April 2014
well on paper the whole of capital gains shall be liable against A.
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