Sale of property co-owned but was shown in just one co-owner

If the property was bought jointly by husband and wife, the sale agreement, too, has to be executed jointly, making both, the husband and wife, eligible for exemption u/s 54 for long term capital gains.

Agree with Mihir Ji,

Both can avail exemption U/S 54 of the IT act...

Citation:  INCOME TAX APPELLATE TRIBUNAL, DELHI ITA No. 4063/Del/11 -  A.Yr. 2004-05 ACIT, Cir. 43(1

Vs. Shri Ashok Alexander

Sir,

I was not asking regarding exemption treatment.I am asking from the point of view of seller.Sellers were co-owners & now this property is sold so what treatment must be done?

Proportionate capital gain will be treated on the hands of both co-owners...

Either they can claim exemption or can pay tax @ 20 percent...

Sir,

The assessee does not want to disclose this sale transaction in the books of his wife.Is there any provision which says the property cannot be disclose in the books of just one co-owner? Is this treatment is wrong to just disclose in one co-owner?

If the value of the property is above 50 lakhs, the buyer will have to deduct TDS u/s 194-IA at 1%. In the challan, the owners name has to be mentioned along with their proportionate share in the property. If this property is jointly owned by the husband and wife, both their names along with their PAN will have to be disclosed in the TDS challan, as both are owners of the same property.

Even if the sale agreement mentions only the name of the husband, society may show some concern as the flat is jointly owned by both husband and wife. You may recheck whether both the names are written on the share certificate or whether the wife is only an associate member in the flat.  

Its better to show the whole of sale consideration if the wife don't have any IT file..

If wife is maintaining any IT file ten the proportionate will be shown in both the assessee returns and in accounts...

Either the husband should show whole as the clubbing provision shall be applicable...