Hi,
Greetings for the day.
I need your help/advise in filling STCG from property sale in case of joint owners. Me and my wife own a flat which we just sold for Rs. 72 Lakhs. The total cost of of the flat as per agreement of sale from builder (including taxes, possession charges etc) is Rs 67Lakhs. The ownership proportion is 60%(myself) and 40% (my wife) based on the payments made by each of us. I need advise on the following:-
1) The buyer charged the full 1% TDS (of Rs. 72,000) in my name although he deposited rs. 36 lakhs (50%) in each of the accounts (he should have deducted 36K TDS for each of us; but he didnt do that). But since I read somewhere that taxation is not as per the joint ownership on paper or on proceeds but rather how much each person contributed towards the purchase, I am planning to show STCG in the proportion of 60% - 40%. I will show the full TDS in my name as it shows in my form 26AS only (probably will get refund in my case) and will pay the required self assessment tax for my wife (as no TDS has been deducted for her). IS this understanding correct ? Pls confirm
2) IN ITR2 STCG section 1a i) under Full value of consideration received/receivable, I should enter the proportionate receivable for each of us in the ratio of 60-40 i.e. for me 60% of 72 lakhs and for my wife 40% of 72 lakhs. Pls confirm.
3) Similarly, IN ITR2 STCG section 1a ii) under Value of property as per stamp valuation authority, I should mention 60% of 67 lakhs for me and 40% of 67 lakhs for wife. Pls confirm? This way the diff of the two columns comes to the proportionate gain in the 1 a iii) Full value of consideration adopted as per section 50C for the purpose of Capital Gains (ai or aii)?
4) If the suggestion is to show full consideration receivable of 72 lakhs in col 1 a i) and full stamp value of 7 lakhs in col 1 a ii) in each of our ITR2 forms, then how will we indicate that the proportion of gain is 60 % - 40% and thats why the col 1 a iii) is not the difference of 1a i) and 1a ii) in either of our ITR forms.
Thanks in advance for all your suggestions.
Best Regards,
Aashish
CAclubindia
