Capital Gain on Join Property

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  1. PKS STP

    PKS STP New Member

    I had purchased a flat in 2005. My mother was a join owner (second name on property) of the property though she had not made any investment in the property.

    Now I plan to sell the property and purchase another residential flat. I have below Q
    1) Will the entire capital gain be considered as my capital gain or will it be shared equally between me and my mother
    2) If the entire capital gain is apportioned to me, will I be able to claim benefit under section 54 if the new flat is purchased on join name where my wife is the first owner and I am the second owner.

    Thanks and Regards


    INVESTURU Member

    Capital Gain will be taxable in hands of both of you, as property is owned jointly.
  3. Shivangi Garg

    Shivangi Garg Member

    Sir, in the above mentioned case:
    1) The capital gain will be equally proportioned between you and your mother (assuming no clear ownership percentage has been mentioned in purchase agreement of property).
    2) You can claim benefit for your share of capital gain by investing in new residential property with your wife as co-owner.
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