One of the critical concerns with respect to the question is, how do I file capital gains on joint property? It is very important to understand that, If the co-owned property is sold, each co-owner is responsible for paying the capital gain on his or her portion of the property. It's worth noting that the apportionment is done at the 'sale consideration' and 'cost of acquisition' levels, not the 'net taxable capital gains' level.
So, in the case of long-term capital gains
tax
on the sale of a jointly owned property, whether commercial or residential, each co-owner may claim an exemption under Section 54EC by investing the indexed capital gains up to Rs 50 lakhs. As a result, the limit on specified bond investments set forth in Section 54EC will apply to each co-owner individually rather than to the property as a whole. Similarly, the conditions of not owning more than one residential dwelling, as stipulated by Section 54F for claiming long-term capital gains exemption, must be examined for each of the co-owners individually, not for all of the co-owners together.
Can NRI buy property jointly with resident Indian?NRIs can own a property with another NRI or a local Indian, according to the RBI.
However, if the resident Indian is otherwise disqualified to buy property, neither the NRI nor the resident Indian will be allowed to buy the property together (irrespective of the financial contribution of the other person).
How much tax to pay?Long-term capital gains are taxed at a rate of 20%, while short-term gains are taxed at the applicable income tax slab rates for NRIs based on their total income taxable in India.
However, I feel that before clarifying your doubt about capital gains tax on sale of jointly owned property, I would like to suggest you to kindly consult a tax consultant with this regard. As Income tax laws in India are very stringent and confusing so to get a detailed idea you should always consult a tax consultant.
Get a great deal of legal assistance services from NoBroker for buying and selling your property Read More: Calculation Of Capital Gaiñ TaxYour Feedback Matters! How was this Answer?
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If the property is in joint name. One is Resident Indian and other one is NRI then who is responsible for deduction of capital gain tax
P K Kaushik
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2022-02-21T11:45:27+00:00 2022-02-21T11:49:34+00:00Comment
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