Tax liability in the case of Joint Ownership of Property

Good Afternoon Sir,

I want to know the tax implication in following case. Please post your inputs and suggessions

Mr. X bought a Flat worth Rs. 3Cr. by selling his another flat and investing his capital gain amount. he paid no tax as per the provision of section 54F.

But while purchasing new flat he put his care taker Mr. B's name as joint owner in the purchase agreement as Mr. X has no relative exist (Assendent / Decendent). All the money paid by Mr. X only.

My question is :

1) As per the agreement the owner of the purchsed flat are Mr. X and Mr. B then will Mr. B treated as 50% ownership of the flat? as the sharing clouse not mentioned in the agreement

2) Whether the share of Mr. B is treated as taxable Gift as he is not qualify defination of "Relative" u/s 56.

3) After death of Mr. X, will Mr. B be the sole owner of the property ? will that part also taxed ???

4) Mr. B is not filing his income tax return and he received high value transaction alert as per AIS filed by Registrar. Is it compulsary to file his income tax return (if answer of question 2 is YES) ???

I'll break down the answers to each of your questions:

1. Joint Ownership and Sharing Ratio - As per the purchase agreement, Mr. X and Mr. B are joint owners of the flat. -

Since the sharing ratio is not explicitly mentioned in the agreement, it can be inferred that the ownership is held in equal proportion, i.e., 50% each. -

However, it's essential to note that the sharing ratio can be disputed or clarified through a separate agreement or court intervention, if required.

2. Taxability of Mr. B's Share as Gift - As Mr. B is not a relative of Mr. X, the share of the property received by Mr. B can be considered a taxable gift under Section 56(2)(vii) of the Income-tax Act, 1961. - The fair market value of the share received by Mr. B would be considered as income and taxed accordingly.

3. Ownership and Taxation after Mr. X's Death - After Mr. X's death, Mr. B would become the sole owner of the property, as per the joint ownership agreement. -

The transfer of property from Mr. X to Mr. B would not attract any income tax liability, as it would be considered a transfer due to death. -

However, Mr. B would need to obtain a succession certificate or a probate of the will (if any) to establish his ownership rights.

4. Compulsory Filing of Income Tax Return by Mr