Joint Holders X & Y sold a property and earned LTCG. To get the exemption for LTCG can they invest each of their share of LTCG into buying seperate property? means X invest his LTCG share in one property and Y invest in other.
Is it allowed under law that the Joint Owners of a property sells it and the LTCG share arising out of it is Individually invested in two different properties?
| Originally posted by : SP Sharma | ||
 |
Joint Holders X & Y sold a property and earned LTCG. To get the exemption for LTCG can they invest each of their share of LTCG into buying seperate property? means X invest his LTCG share in one property and Y invest in other. Is it allowed under law that the Joint Owners of a property sells it and the LTCG share arising out of it is Individually invested in two different properties? |
 |
Anybody??
Apologies for reviving this thread. Looking for some advice.
Me and my wife (both salaried) sold a jointly owned flat to another couple. Ownership pattern changed from Husband1 & Wife1 to Wife2 & Husband2.
As per my understanding, TDS deduction should have happened in four transactions as below
Wife2 => Husband1 (0.25%)
Wife2 => Wife1 (0.25%)
Husband2 => Husband1 (0.25%)
Husband2 => Wife1 (0.25%)
But while deducting the TDS, Wife2 (as adviced by her CA) deposited 100% TDS against Husband1's PAN in a single transaction. I had highlighted this to the buyers. Their response was that TDS transaction should be only between first owners i.e. Wife2 => Husband1 (1% TDS). I checked with a couple of real estate brokers and they supported this theory too and asked me to chill.
Now me and my wife are filing our returns have few questions regarding the same.
1. Since full TDS is credited against Husband1's PAN, should he cover 100% LTCG in his returns?
2. Ideally we would like to split LTCG equally. But if we do that, could there be any issues going forward (given that Wife1 does not have TDS credited to her PAN)?
3. I understand that TDS is responsibility of the buyer. So should I just split LTCG 50-50% and let the buyer do the answering, if required? If I split LTCG, could we land in trouble in future?
Thanks in advance.
Hemant
| Originally posted by : Hemant | ||
 |
Apologies for reviving this thread. Looking for some advice. Me and my wife (both salaried) sold a jointly owned flat to another couple. Ownership pattern changed from Husband1 & Wife1 to Wife2 & Husband2. As per my understanding, TDS deduction should have happened in four transactions as below Wife2 => Husband1 (0.25%) Wife2 => Wife1 (0.25%) Husband2 => Husband1 (0.25%) Husband2 => Wife1 (0.25%) But while deducting the TDS, Wife2 (as adviced by her CA) deposited 100% TDS against Husband1's PAN in a single transaction. I had highlighted this to the buyers. Their response was that TDS transaction should be only between first owners i.e. Wife2 => Husband1 (1% TDS). I checked with a couple of real estate brokers and they supported this theory too and asked me to chill. Now me and my wife are filing our returns have few questions regarding the same. 1. Since full TDS is credited against Husband1's PAN, should he cover 100% LTCG in his returns? 2. Ideally we would like to split LTCG equally. But if we do that, could there be any issues going forward (given that Wife1 does not have TDS credited to her PAN)? 3. I understand that TDS is responsibility of the buyer. So should I just split LTCG 50-50% and let the buyer do the answering, if required? If I split LTCG, could we land in trouble in future? Thanks in advance. Hemant |
 |
Anybody there to help please??
CAclubindia
