Respected Sir,
I am a female and file my ITR-4 every year.
We are 2 members, 1 brother and 1 sister. We are both married and residing separately. Parents died a decade ago without any will. Brother sold house property of our father in December, 2018. At the time of execution of sale deed the property was in our Father’s name. The property was about 40 years old.
We both signed the sale deed of property. The purchaser had issued two separate cheques in our individual names for 50-50% share of the sale proceeds. We deposited the cheques in our individual separate bank accounts.
My bank account was credited with the amount of the cheque of my share of the sale proceeds. I transferred the amount, received by me in my bank account, to my brother’s bank account through online transfer on the same day of credit.
So I do not have any money of the sale proceeds with me and there is not any dispute with my brother in this matter.
Whether I have to pay tax on my share of this transaction Or my brother will pay the tax on entire proceeds ?
Please advise me.
Thanking you,
GDR
I am a female and file my ITR-4 every year.
We are 2 members, 1 brother and 1 sister. We are both married and residing separately. Parents died a decade ago without any will. Brother sold house property of our father in December, 2018. At the time of execution of sale deed the property was in our Father’s name. The property was about 40 years old.
We both signed the sale deed of property. The purchaser had issued two separate cheques in our individual names for 50-50% share of the sale proceeds. We deposited the cheques in our individual separate bank accounts.
My bank account was credited with the amount of the cheque of my share of the sale proceeds. I transferred the amount, received by me in my bank account, to my brother’s bank account through online transfer on the same day of credit.
So I do not have any money of the sale proceeds with me and there is not any dispute with my brother in this matter.
Whether I have to pay tax on my share of this transaction Or my brother will pay the tax on entire proceeds ?
Please advise me.
Thanking you,
GDR
3 Answers
Dear GDR,
As you have signed the Sale Deed as one of the co-owners, the capital gains made on your Share is subject to taxes.
You have to pay taxes on the realized gains.
The amount given to your brother can be considered as a GIFT and it is a tax-exempt transaction for both of you.
Related articles :
As you have signed the Sale Deed as one of the co-owners, the capital gains made on your Share is subject to taxes.
You have to pay taxes on the realized gains.
The amount given to your brother can be considered as a GIFT and it is a tax-exempt transaction for both of you.
Related articles :
Thank you, Sir.
You are welcome, keep visiting ReLakhs.com !
One more question, capital gain can be shown in ITR-4? Which form I should file?
Dear GDR,
As the property been sold in FY 2018-19, the applicable ITR form can be known after April 2019 only, once the IT dept releases / notifies new ITR forms for FY 2018-19 or AY 2019-20.
Related article :
AY 2018-19 Income Tax Return Filing | Which ITR Form should you file?
As the property been sold in FY 2018-19, the applicable ITR form can be known after April 2019 only, once the IT dept releases / notifies new ITR forms for FY 2018-19 or AY 2019-20.
Related article :
AY 2018-19 Income Tax Return Filing | Which ITR Form should you file?
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