Capital gain

If there is clear documentary proof - say a formal agreement - between A and B about their respective shares in the total investment, and if A has proof of his LTCG from the sale of his earlier house property, then A should get exemption for his investment of Rs 12 lacs in the jointly held property. B should keep proper records of repayment of his bank loan according to the terms. It is presumed that the property is registered in the joint names of A and B setting out their respective shares. It is advisable for A and B to pay the dues such as property taxes etc. in equal proportion.