A joint ownership (50:50) property was sold. There are some capital gains & it falls under Long Term Capital Gains. In ITR2 how it should be recorded? Both the parties will show 50% of gains each in gains & registration amount section? Please clarify

Ans: There are two events, which are important
1. The event of property registration in your name from the previous buyer - this is an event of transfer and naturally capital gain txn. Since you and your sibliings are the owners of the property now, the tax liability has to be discharged in your sharing proportion.

2. The sale by you all is an event of short-term capital gain again, only if the tax liability is discharged as above, else it would be considered as long - term capital gain.

Ans: Income from capital gain is required to be reported in ITR 2. Person earning income from sale of investment is required to provide details of personal property held by him/her in ITR if income is more than 50 lacs during the year.

Ans: Namaste,

I understand your situation and I'll try to provide a simple explanation.

For your mother's case, since she has sold a property and made a long-term capital gain, she will need to file her Income Tax Return (ITR) using Form 2 instead of Sahaj (Form 1). The reason being, Form 1 is for individuals having income from salaries, one house property, other sources (interest etc.) and having total income up to Rs 50 lakh. However, in your mother's case, there is a capital gain involved, so Form 2 is more appropriate.
The sale proceeds of the house will be reported under the head 'Capital Gains'. The purchase value of the plots will be reported as the 'Cost of Acquisition' under the same head. The capital gain tax paid will be reported in the 'Taxes Paid and Verification' section.
As for your case, since you have been made a co-owner of the plots, you should also declare this in your ITR. However, as you have not contributed to the purchase, it will not have any tax implications for you. You can mention it under the 'Asset and Liability' section if your taxable income exceeds Rs 50 lakh.
Please note that this is general advice and the exact details may vary based on the specifics of the transactions. It's always a good idea to consult with a tax advisor or chartered accountant to ensure all details are accurately reported.

Ans: For the income tax purpose, person who make the payment at the time of acquisition of property, is considered as owner. By adding name is agreement, ownership for the income tax purpose will not be decided.

Further to report gain from capital gain, ITR 2 is applicable.