Joint owner not liable to pay Tax if no amount paid from his/her account for purchase of property

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The Mumbai Income Tax Appellate Tribunal has ruled that Joint owners of properties by mere name cannot be held liable for Tax liabilities if the purchase of the property was not financed by him/her. Many people/couples purchase flats/properties in Joint names for convenience and security sake, but the money is paid entirely by one of the parties.

The order was given in the case of a Medical Professional named Vandana Bulchandani.

An Income tax officer had determined that Bulchandani had not disclosed Capital Gains via sale of property in Parel, Mumbai, worth 2.12 crores, which she jointly owned with her husband in the year 2008-2009. But Bulchandani claimed that the property purchase was financed entirely via money from her husbands account and that he had offset the capital gains against the loss in share trading.

As per IT rules, short term capital gains can be offset against loss from share sales in the same financial year.

The case was referred to the Tribunal and it ruled in favor of Bulchandani and her husband.

By Mayur

Mayur is a real estate professional based in Navi Mumbai for the past 20 years. His expertise in real estate includes every sphere of the real estate sector from legal to Building Construction to Vastu to home interiors. When it's not real estate, its either his fight against corruption or pulling focus (film making) with his NIKON D750 that keeps him busy. With over 9 million views of his pictures on Google Maps and over 1.3 crore views of his contributions, he has been designated as a Master Photographer by Google. He can be reached on 9987452642

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