Capital gain computation for a property which is jointly in name of me and father ?

POSTED BY vignesh_mys ON September 25, 2014 7:38 pm NO COMMENTS

Hi,

I have the following scenario, I need some guidance to calculate the tax…

 1)      Land is purchased in 1998 for Rs. 2.5L , on my dad’s name, was working for state Govt, now retired 4 years ago.

2)      House is built in 2005, borrowing Rs.10L housing loan from ICICI bank in my name (but Father as joint applicant as site is in his name).  Plus we put around Rs.4L from our pocket for construction.

3)      In 2008,  I repaid all the loan amount, Total amount including interest paid was ~16L Rs

4)      The woodwork + fixtures etc costed around ~2L Rs in 2005

5)      Now the plan is to sell the property in next 2 weeks at 64.5L Rs

Can you please advice the following ?

1)      Whether to split the money between me and dad, after this transaction is done from taxation point of view, as I can use the amount for some foreclosure of another housing loan

2)   OR

)      Keep the money on my  dad’s name. Also can you please advice, what is the capital gains in this overall transaction (by looking into indexation or no indexation)

Thanks in advance

Vignesh

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