I need to understand the tax implications of a residential property which is jointly held with parents (i.e. 3 property holders in total) with regards to the following:
1. Benefits of deduction of interest u/s 24 on loan amount.
2. Implications of long term capital gains tax when the property is sold (i.e. after 3 years from purchase). In whose hands is the gain liable to be taxed? Myself only or equally in the hands of all the parents.
I want to understand the implications in both the following scenarios:
A. Purchase consideration of the entire property is paid by me.
B. Purchase consideration of the entire property is paid jointly by all the holders (in equal / separate ratio)
Thanks for the prompt response.
CAclubindia
