income tax on joint registration of real estate property

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  1. amjad

    amjad New Member

    Dear sir/Madam,

    My query is regarding income tax on real estate,

    Two individuals are doing real estate business jointly. They are purchasing acres of land jointly by registering in sub - registrar office in their both names and selling the developed plots.
    My query is,
    1.they are not formed any partnership firm or aop,
    2.they said their profit sharing ratio is 50:50
    3.How i should assesss their income, in the capacity of individuals or AOP? please suggest me.
     
  2. VAIBHAV DILIP RANE

    VAIBHAV DILIP RANE Active Member

    @amjad sir,

    In such case it is better to proportionate the Income in said ratio, and show them in their Individual ITR and pay appropriate taxes.

    or else if ITO noticed than he will charge tax @30% directly.

    >> And as soon as possible form a partnership firm, take PAN for firm, and assessed the Income thereon.

    >> Don't make Tax Evasion, A Request.
     
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