19 August 2013
Dear Sir, I have purchased Flat in Sep 2009 and paid 80% of cost Rs 22.5 Lakhs got its possession Jan 2012 in 30 Lakhs(with registration), I have sold this Flat in 43 lakhs in Apr 2013 with final deed executed on 16 Apr 2013 but registered agreement of sale was done in Jan 2013, All payments were transfered in my account btn Nov 2012 till 27 Feb 2013. Only the possession and keys were handed over to the purchaser on 16 Apr 2013 with the execution of registered final deed. I and my wife were the owner of Flat & this was the only property on our name. Since I was not aware of STCG Tax, I purchased another Flat in 44 Lakhs using all our funds receieved from my previous sale. Now we own this Flat and reside in it. I have submitted ITR 2012-13 as showing only income of my salary. I thought I will mention in year 2023-14 IT return because final deed is executed in Apr 2013. Also I have not consulted any advisor and considered that I can use my funds for another Flat purchase. Please advise what should I do, I M not in position to pay such a huge tax as I have renovated my house. We have only this property on our name. Share of property btn both is not mentioned any where in agreement. On what basis we can share this capital gain and file seperate returns. She is a house wife and amount transferred in our joint account was 17 Laks. Please advise//
19 August 2013
Since the payment has been received by you against sale of the property from Nov., 2012 the assessment year shall be 2013-14 and you have to include this short term capital gains and pay the tax accordingly.
As regards share in the property if it is not defined anywhere then the same can be decided on the basis of payment made by you and your wife at the time of purchase of the property. Suppose you have paid say 20 lacs and your wife paid 10 lacs then the share will be 2:1 and accordingly you can file both the returns. If you have already filed your returns for 2013-14 then you can revise it.
CAclubindia
