01 June 2010
I faced a problen in one of the case; suppose if plot of value 2 lac for which advance was given by me & my spouse jointly (30:70) but after when i applied fr registry society said that such property can be registered only in one person's name now how i transfer that 30% in my spouse a/c's. both of us b/s in 07-08 shows such proportion & now in 09-10 registry only in my spouse name now whether spouse can pay me those 3% in cash /bank or if paid in cash 269ss or 269t attracted on such loans or not b/c it is for plot
1. In 2010 Balance sheet show your contribution as advance (as shown in 07-08) despite the fact that you don't have any right in the property due to registry in the name of your spouse.
2. The reason is still you have to recover the amount from someone i.e. your spouse.
3. Your spouse will also show the amount invested by him in the property in 09-10.
4. In current year; he can pay you by account payee cheque and in this way he will increase the amount in the property and your advance will become nil.
5. Here one can argue that he had to show your contribution as a loan but for practical purposes this may create undue harassment by the Income-Tax Authorities that he took loan from you without account payee cheque.
6. If in future; during the course of assessment such question arises; then explanation can be given that registry was denied in the name of two persons hence this situation happened.
CAclubindia
