Capital Gain Tax Calculations

The three family members A, B and C jointly purchased a flat for thier living., by contributing  in the ratio of 1: 2 : 5 and taking a loan from the bank. The EMIs  of loan were paid by A and B in equal  share for 3 years and then B stopped payng the EMI which was fully borne by A. After   7 years they want to sell the flat and live seperately .

 How the capital gain tax  is to be calcualted by all the three, C not being assessed as C never earned anything and his contribution  was after selling his ancesotral property .

Replies (5)

Capital gains must be calculated based on ownership ratio, as declared in the purchase deed.

Since they all are family member , they did not mention their share in the  purchase deed.

will it be correct for IT purposes, if the sharing is done on the basis of each person's contribution (A  (initial contribution + total of EMIs till sale), B ( initial contribution + total of EMIs till sale), C - initial contribution  only ?

Generally, in such cases the capital gain is divided equally........... ie. 1/3 for each individual.

O.K. thank you

While calculating cost of acquisition ,I believe interest paid to bank on Home Loan will also be added ? Will it too be indexed ?

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