26 June 2010
A plot is purchased by two person jointly and paid the amount of plot equally, however the registry amount is paid by only one person. what would be the implication of this transaction? whether the registry amount paid by the person will be loan to another person or will be considered as gift?
26 June 2010
If it is treated as gift, provisions of Sec. 56(1)(v) (that is gift from non relatives mentioned in the proviso) will come into play. If it is treated as loan provisions of Sec. 269SS would apply. However it depends the quantum of loan, reltaive or non relative as defined in the section etc.
26 June 2010
Here the relation between two person are not mentioned. If the those persons are brothers, no problem if it is treated as gift. Otherwise, section 56(1)(v) applies.
If you treat it as loan: Since the amount paid to the registror,a body of government, the provisions of section 269SS will not apply. When you repay the amount and the amount exceeds Rs20000/-,including interest, Provisions of Section 269T applies and so you have to repay by way of Crossed account payee cheque or Demand draft.
27 June 2010
As the joint owners have to pay the registration fee and one of the owners paid for the other, the question of Government payment will not arise and source of funds to the other co owner shall be considered to determine the applicability of Sec.269SS or otherwise.
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