SCHEDULE AL in case of joint property

Le'ts say we have a property of 10 lakhs. A and B are sibling. A is salaried person with more than 50 Lakhs income. B is currently studying and have no source of income. A bought the property and paid whole amount. B is also co-owner of the property with 50 percent share in the final registry of the property. A and B both have 50-50 ownership. Basically A is gifting 50 percent of property to B. Here are the questions - 1. How much A needs to decalre in the "Schedule AL" ? 50 percent or 100 percent ? - I believe 50 percent since A is owner of 50 percent . 2. If we sell the property, what will happen with capital gain? A needs to pay taxes for the 50 percent capital gain and B needs to pay for remaining 50 percent capital gain. Is my understnading correct?

Replies (3)
Quick Summary
This discussion clarifies how to declare ownership in Schedule AL for jointly owned property, specifically when one sibling gifts a share to another. It confirms that the owner who gifted the share should declare only their remaining percentage. Furthermore, it explains that capital gains tax upon selling the property will be split proportionally between the co-owners based on their respective shares.

Yes, correct.           

So, for question 1 - A shows 50% in the Schedule AL.

for question 2 - A and B both needs to pay capital gain separately.

Could you please confirm?

Yes confirmed. Make a gift deed for the amount gifted.

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