Tax on Joint ownership house property

- If the respective shares of the co-owners are definite and ascertainable then share of each co-owner in the property shall be included in the total income. If both the properties are funded independently by husband and wife using own sources of funds then both will be treated as owner basis on the percentage of investment in the property. If the property is funded by either of the spouse and the name of other spouse is added for any reason then the spouse who has funded the property is treated as owner of the property and capital gain will be calculated in the hands of that spouse only irrespective property is purchased from joint accounts. 

- Exemption of capital gain is available u/s 54

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Hi

In case of absence of ownership percentage provided in the deeds, the basis of capital gain taxation would depend upon how the purchase of the property was funded. Although wife may b first name joint holder for an account, the husband may have deposited the entire funds in that account. 

Capital gains would be taxable in ownership percentage based on funding for purchase. This is irrespective of how TDS has been deducted by the buyer.

We may discuss the issues more in detail with complete facts of the case and advise accordingly.

Both husband and wife will be owners depending on the investment they have made in the property. The deduction of TDS on any particular PAN would not determine in whose hands income will be taxable. The proportion in which sale proceeds are received would also not be determinative. The amounts have to be allocated between them based on their funding in property. 

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Sorry the questions is bit long but If both have invested in property and both are joint then tax needs to be paid by both and the buyer has made a mistake by deducting TDS in only one name.

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