Prashant (abc) 04 March 2015
I have a property on my & my mother's name. I am fully contributing the EMI & my mother's name is only for namesake. Property cost is 60 lacs. My loan balance is 30 lacs. Now I want to sell the property. What would be the profit proportion shared between us? Can I ask the buyer to give two cheques; 30 lacs each. I will close the loan & other cheque will be on my mother's name. How will be the tax calculated, if any?
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MAHESH (Tax Consultant) 09 March 2015
Dear prasanth, By relationship even u r paying emi, other exp etc., whatever. Legally both of you are indipendent persons. So request the buyer to issue seperate chqs. Tax has to be paid u and u r mother indipendently on sale minus cost of land along with indexation if any..,