Transfer of property - Need urgent help!!!

Obviously the taxability arises in the hands of your father as he was the owner of the property and sale deed was executed in his name. And the consideration should have been received in his bank account only to maintain the transparency in the eye of the department.

In your case, compute the capital gain and declare the same in your father's return.

As the consideration has been received in your bank account, it is suggested that show this amount in your balance sheet as 'Loan from Father' or else add to your capital by stating it 'Gift from Father' and accordingly file your return. At the same time you should have all the proofs with you that substantiate that the amount is related to the sale of property of your father. In case, department sends notices to you, you can show them all these proofs.

This is my opinion only. Other experts' opinion are welcome.

There is a little confusion over here, how can the buyer credit amount in your account if the property was in your father's name ?Secondly even if the amount is received in your account still the taxability arises in the hands of your father. If the property sold was held for more than 3 years than you can claim indexation benefit for the purchase cost.

There is no restriction for offering income. If you don't have income, still you are showing income and paying tax accordingly, department will be happy! They don't send notices in case income is offered unless it is lower than their records, then only notices will come. So, in your case, your father can disclose the capital gain in his return, and offcourse, he should offer such income in his return as the gain relates to him. The department may not send notice to your father for offering more income, but they may send notice to you. That's why I told that you should have all the proofs with you to substantiate your claim.

If the property was acquired before 1.4.2001, then take the FMV of the property on that date as cost. After that apply indexation to calculate Indexed Cost of Acquisition. Deduct the same from the Full Value of Consideration less Transfer Expenses,if any. Further, you have to consider Sec.50C. Go through the Capital Gain sections, you will understand.

You must check the stamp duty value of the property. If the sale price is more than the stamp duty value then no problem, disclose the Sale price as per agreement. In case, the sale price is 5% lower than the Stamp duty value, then you have to consider the stamp duty value.