What are the tax implications if I buy a new property after selling a house where my mom was a co-applicant, and I've never filed her ITR?
Gains (being long term in nature) derived from sale of house would be subjected to 20% tax (after indexation benefit) in the hands of the both the co-owners in their ownership ratio
- Apr 1, 2024,
- Updated Apr 1, 2024 1:05 PM IST
Section 194-IA provides for a 1% TDS to be deducted in case of purchase of immovable property wherein the amount of sale consideration or stam-duty value (whichever is higher) of the new house is Rs. 50 lakhs or more. Accordingly, the buyer would deduct TDS u/s 194-IA on the sale consideration which could be in the proportion of the co-ownership. Credit against such TDS can be claimed by the seller by furnishing their tax returns against their taxable income. Thus, it is mandatory for sellers to furnish their tax returns in order to claim the TDS credit.
(Views expressed by the investment expert are his/her own. E-mail us your investment queries at askmoneytoday@intoday.com. We will get your queries answered by our panel of experts.)
Section 194-IA provides for a 1% TDS to be deducted in case of purchase of immovable property wherein the amount of sale consideration or stam-duty value (whichever is higher) of the new house is Rs. 50 lakhs or more. Accordingly, the buyer would deduct TDS u/s 194-IA on the sale consideration which could be in the proportion of the co-ownership. Credit against such TDS can be claimed by the seller by furnishing their tax returns against their taxable income. Thus, it is mandatory for sellers to furnish their tax returns in order to claim the TDS credit.
(Views expressed by the investment expert are his/her own. E-mail us your investment queries at askmoneytoday@intoday.com. We will get your queries answered by our panel of experts.)