Sale of joint property

This query is : Resolved

umeshseth (Querist)
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04 October 2013 two friends purchased a plot in joint name, release the consideration from their separate bank accounts, then construct and sold and took the consideratio in separate names. pls advice the tcapability either in the status of Individual or in the status of AOP.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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04 October 2013 It depends on nature of the agreement between them, if they invested it as business purpose then AOP in case if they invested as capital gain purpose then it is individual.

To say AOP required a name to the AOP firm, So if they have AOP business and the such plot is registered in the name of AOP firm then it is AOP otherwise if the plot is get registered in the names of the both then it is taxable in Individual.

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