Capital gain tax for joint property

Tax queries 309 views 2 replies

Murali

Purchase

33 Points Posted on 21 May 2015

Capital Gain Tax for Joint Property...

Greetings ...

I am planning to sell the self occupied flat (Purchased in 2004) purchased by me and it is a joint property with my wife. I am the assesse of this property and the IT exemption claimed on the Home loan Interest by me.

Option 1: Now, we want to purchase two flats one in my name and other in my wife's name. How will be the capital gain Tax considered in this scenario?

Option 2: We would like to a house, purchasing a land. (Two portion / flats, one in my name and other in my wife's name). How will be the capital gain Tax considered in this scenario?

Would like to know the possibilities available to reduce the Capital Gain Tax. Kindly advise...

Replies (2)

Z

Tax Consultation (US and India)

2970 Points Posted on 21 May 2015

Whether the entire amount of loan was paid by you, if then you are the sole owner of the property and hence there is only 1 assessee and exemption shall also be allowed to you only. If however part of the loan was repaid by your wife then to such extent she will be considered as owner (unless separately mentioned about the holding) and exemption shall be allowed to both of you.

Exemption can be claimed only for one residential house property (by one assessee)

Merely having property in someones name does not make them owner, who made the actual investment will be considered as the owner

Other option is S.54EC , 54GB