Joint investment in a property by two brothers

Tax planning 387 views 5 replies

RAMESH

STUDENT

106 Points Joined October 2012

One flat is purchased by two own brothers by making payment from both of their bank account..However the Property is registed in ONLY ONE of the brothers name..

Assume payment made rs 5 lac by each of the brothers

So how to deal with the situation ?

So at what value the person on whose name the registry has been done should show the value of flat and the treatment of the payment of the fund which has been made by other brother but not registered in his name?

Also how will the other brother on whose name registry hasn't been done will show his payment in flat?

would it be treated as gift paid by one brother to another brother for the value which has been made by him but not registerd in his name??

kindly elloborate

Replies (5)

Shivani Mittal

Practice

425 Points Joined September 2009

Rs. 5 lacs can be shown as loan or gift from one brother to another (in whose name property is registered). Total purchase consideration will be the property value for the individual in whose name property is registered.

If in case, former intends to share the property, first the registry has to be done in his name. Subsequently Rs. 5 lakhs paid by him will be his share of value of property i.e 50%.

Regards

CA Shivani Mittal