I (1st co-owner) own a flat jointly with my wife (2nd co-owner). Its loan free and me & my wife are salaried and financially eligible to take a loan. (a) I wish to sell the house to her or (b) vice-versa. Is it possible ? If yes, then which option (a or b) is better. Why I am doing this ? : I had bought adjoining flats (A & B) in 2004-05 via a Land Allotment Deed (undivided share of land) that is registered with revenue department, and subsequently a notarised single construction agreement of 260 sqyd with builder. This was because i did not had knowledge on this subject and builder quickly made everything happen with bank loan. Then later last year i planned to sell both flat, and the buyer's (of flat A) advocate asked me to pay the construction agreement duty, hence i got the stamp duty paid on the construction agreement also, so now it is also registered. However both flats always had separate tenament number registeted with local corporation with separate tax bills. Both these flats have separate share certificates from our maintenance society (formed only for maintenance purpose). Earlier both flats had a single electrical meter however last year i made two separate electrical connections. I have sold flat a to a buyer last year however now i do not have any papers other than reciepts, share certificate. Now i am unable sell flat B hence i need to create property papers for which i am doing this transaction.
Hi
Yes, it is possible. The key considerations would be:
1. You would sell 50% of your rights in the property to your wife.
2. The agreement would mention the ownership details pre and post this transaction.
3. Such deed shall be registered and stamp duty shall have to be paid.
4. Your wife will pay you for the purchase of 50% share.
5. Capital gains, if any, have to be reported in your ITR and applicable taxes be paid.
Hi
Yes you can do so. Sale consideration should be fair value & if any capital gain arises you need to pay capital gain tax accordingly.
Hello,
Yes, it can be done.
Such document would be required to be properly stamped and registered. Capital gain, if any, would be taxable.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Dear Sir,
Hope you are doing well !!
Yes, it is possible provided everything is properly documented.
Also, capital gain taxes, if any, have to be shown in ITR and pay applicable taxes.
We may discus further over call.
