Query on Joint Property Sale

This query is : Resolved

Sharad (Querist)
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03 July 2022 Hello,
I bought flat ~12years ago @16L and sold in FY 2021-22 in 40Lacs.
Sold property was Jointly owned by Me & my mother.
This sold transaction entry of 40lac (SFT-012) came in 26as & AIS of both me & my mother.

I need your help to understand,
Question 1 : while filing ITR how I need to show this
Option 1 - both me & my mother need to show full 40L
Option 2 - me & my mother need to show 20L each.

Question 2 : how the buy price needs to show for both the buyers
Option 1 - both me & my mother need to show full 16L
Option 2 - me & my mother need to show 8L each.

Question 3 : After 4/5 years, I have paid VAT charges of ~32000
How this can be shown in ITR to avail Tax benefit (with indexation)

Question 4 : I had some legal issues with my Tenant, who sublet my property to someone else.
In this case I had paid 25000 as lawyer fees.
and at the end paid 1 lac rupees to person staying in my flat to vacate.
How this 1 lac & 25 thousand can be shown in ITR to avail Tax benefit (with indexation)

I will be obliged If someone can help me on this.

Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 July 2022 1. Option 2 - me & my mother need to show 20L each.
2 Option 2 - me & my mother need to show 8L each. Update the cost with indexation.
3 Add it to the cost as addition.
4 Show these expenses as cost of sale.

Sharad

Sharad (Querist)
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03 July 2022 Thank you very much Sir for your reply.

3 Add it to the cost as addition.
>> Means, I should consider my buy price as 16.32 Lac (buy + VAT).

4 Show these expenses as cost of sale.
>> Means, expenses under category "Expenditure wholly & exclusively in connection with Transfer" in ITR (along with broker fee of 25k which I spent while transfer management)

2 more questions:
Question 5. Is there any way to show in ITR that I am entering this buy/sell amount as 50% because I am co-owner ?
Also, mentioning Same buyer PAN & Aadhaar in 2 separate ITRs (of me & My mother) will be OK. Or do I need to mention 50% sharing information anywhere in ITR.

Question 6 : Do I need to split this expense amount of 1.5L also as 50-50% in my & mother's ITR

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 July 2022 3 and 4 your observation is right.
5 yes, it's okay. Also mention 50% share.
6 yes, split the expenses.