Asset Declaration in ITR2 for flat purchased in joint ownership with mother(mother is housewife)

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Vicky Kumar

Job

124 Points Joined April 2024

I have purchased a flat of 80 lacs in my name and mother name.

My mother is housewife.

I have paid 20 lacs as advance from my bank account to seller and rest 60 lacs was through bank home loan.

In bank loan paper mother had signed as a co-applicant (as her name is there in property paper as Joint owner).

My mother has not contributed any money in purchase as she is a housewife.

I have deducted 1% tds from my PAN on 40 lacs and 1% tds from my mother PAN on 40 lacs on behalf of seller I.e. 40k each from my PAN and mother PAN (as mother name is there as joint owner)

In the property registry paper my mother name is their as a joint owner but she has not paid any money.

Now, I am filing my ITR ( ITR2 as income is above 50 lacs) where I have to disclose my assets...so, I have to mention this flat there. So, should I mention its value as 80 lacs or should I just mention only 40 lacs [as my mother is also a joint owner as per registry paper where share is not mentioned in the sale deed)]. Please suggest.

Replies (3)

Rama chary Rachakonda

Master in Accounts & high court Advocate

9037 Points Joined December 2011

A practical question about disclosing assets in your ITR! Since the property is jointly owned by you and your mother, and the sale deed doesn't mention the specific share, you'll need to consider the following: Disclosure in ITR 1. _Asset Value_: You should disclose the entire value of the property, i.e., ₹80 lakhs, in your ITR. 2. _Joint Ownership_: Mention that the property is jointly owned with your mother. Reasoning 1. _No Specific Share_: Since the sale deed doesn't mention the specific share, it's assumed that the ownership is shared equally. 2. _Disclosure Requirement_: As per the Income Tax Act, you're required to disclose all assets, including those jointly owned. Additional Considerations 1. _TDS Deduction_: You've correctly deducted TDS on behalf of the seller, considering the joint ownership. 2. _Mother's Income_: Since your mother is a housewife and hasn't contributed to the purchase, her income from the property (if any) would be considered as your income, as per the Income Tax Act. To ensure accurate disclosure, it's recommended that you: 1. _Consult a Tax Professional_: Seek guidance from a tax expert or chartered accountant to ensure you're meeting all disclosure requirements. 2. _Maintain Documentation_: Keep records of the property purchase, loan documents, and TDS deductions to support your disclosure in the ITR. By disclosing the entire value of the property (₹80 lakhs) and mentioning the joint ownership, you'll ensure compliance with the Income Tax Act and regulations.

Venkatesh Chamarthi

44 Points Joined October 2017

You should disclose 80 lacs in your assets. Your mother will not be considered as joint owner for income tax purpose as she has no source of income to purchase an asset for 40 lacs. You are beneficial owner of the house, so you should disclose 100% of the asset.

As 1% TDS is deducted from your mother's account, Income tax department may ask for source of income or proof of payment of 40 lacs to seller from your mother's account.

It looks like entire 80L was transferred to sellers account from your account alone. Entire 2% TDS should have been deducted from your account. You may have to rectify this mistake to avoid complications in future

Vicky Kumar

Job

124 Points Joined April 2024

Originally posted by : Venkatesh Chamarthi
	You should disclose 80 lacs in your assets. Your mother will not be considered as joint owner for income tax purpose as she has no source of income to purchase an asset for 40 lacs. You are beneficial owner of the house, so you should disclose 100% of the asset. As 1% TDS is deducted from your mother's account, Income tax department may ask for source of income or proof of payment of 40 lacs to seller from your mother's account. It looks like entire 80L was transferred to sellers account from your account alone. Entire 2% TDS should have been deducted from your account. You may have to rectify this mistake to avoid complications in future

20 lacs was directly paid from my account....60 lacs was paid from home loan where my mother has also signed as co-applicant (although she is a housewife and I will be paying all the EMIs)....also, mother name is there in regiustry paper as joint owner...pls suggest