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: Any income arising from the house property will be apportioned equally between the co-owners and taxed separately in the hands of both.
It may be noted that if the co-owner has not contributed anything for purchase of property, then he / she will not be treated as co-owner.
After determining the Full value of consideration, the cost of acquisition for each co-owner shall be reduced to compute the capital gains for each co-owner separately. For a long term asset, the benefit of indexation is available.
Eligible deductions can be availed by both co-owners individually and the Long Term Capital Gains can also be reinvested for tax savings individually.