Capitals gain tax and TDS and share in property

Capitals gain tax and TDS and share in property

Sir/ma’am 
1. My father is sole owner of a flat that he’s selling for 70 lakhs. 
We are also buying a new flat for 1 cr 40 lakhs in which my father is investing the above amount of 70 lakhs plus 25 lakhs from his savings and I ( his son) am investing the rest. 

2. For our new flat, my father, me and wife want to be joint owners although my wife is contributing no money. Can we 3 be equal owners in new flat despite unequal contributions?contributions are - 
 (A) father 70 lakhs from old flat 10 lakh from savings
 (B) mother - 15 lakhs. But not owner in old as well as new 
 house. 
 (C) Me - 45 lakhs through loan. 
 (D ) wife contribution - NIL ( but adding her to avail benefit of less stamp duty for women also because my father wants her to one of the joint owners as he loves her very much ) 

3 I will be paying the stamp duty on everyone’s behalf plus the cost of renovation of the house too. Can I pay stamp duty on everyone’s behalf ?

4. Also, in what proportion do we (my father ,me and my wife)have to pay TDS ? 

5. Around 13 lakhs is being contributed by my mother but she doesn’t want to be in the conveyance deed. Is it correct ? Does she also have to pay TDS despite her name not being there in conveyance deed? 

6. Can there be a scenario that since my father , me and my wife intend to be equal owners and our share in the property is 1.4 cr/3 =46 lakhs approx , we don’t pay any TDS since our share in new property is less than 50 lakhs.

Asked 6 months ago in Capital Gains Tax

Ownership Structure:
- Yes, your father, you, and your wife can be equal owners of the new flat despite unequal contributions.

Paying Stamp Duty:
- You can pay the stamp duty on behalf of everyone.

TDS (Tax Deducted at Source):
- TDS is applicable on the total property value if it exceeds ₹50 lakhs.
- In your case, TDS @ 1% of ₹1.4 crores = ₹1.4 lakhs.
- Each co-owner (father, you, and your wife) needs to pay TDS proportionate to their ownership share, which is approximately ₹46,667 each.

Mother's Contribution:
- Your mother can contribute ₹15 lakhs without being on the deed and will not be liable for TDS.

For detailed, personalized advice, consider a phone consultancy.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

Thank you.

Shubham Goyal

CA, Delhi

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Father Contribution: 80 lacs

Son Contribution:60 lacs

2. Yes your wife can be a joint owner in the property

3. Yes

4. Firstly confirm residential status of seller. If he is resident then TDS rate would be 1% otherwise it would be 20%+surcharge+ed.cess@4%. Also confirm whether property is jointly owned or not

5. You can take gift from mother

6. Share in the property is based on the ratio of investment by each co-owner

7. Collect and retain bills of renovation to claim cost of improvement at the time of sale of the property

For detailed discussion you may opt for phone consultation

Vivek Kumar Arora

CA, Delhi

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