• Property sale

Me my family had taken a flat on my mothers name.but after registration for some urgency we had sold the flat, for same price which had taken.
all family members have contributed 10l each and taken that flat on my mothers name. ( 40l ) 
me, my father, mother and sister stays together.
after selling we got same amount. we sold within 2 months after registration

do we need file it return on my mothers name.
my father & mother have source of income only from agriculture from past 30y.

kindly advice.
Asked 1 year ago in Income Tax from Hyderabad, Telangana
Dear Sir

The transaction will be considered as Short Term Capital Gain (Loss) since the property was acquired and sold within 36 months.

Since the value of transaction exceeds RS. 15 Lakhs, the PAN of the Buyer/Seller would have been reported in the AIR by the Registering Authority.

In view of the above, and to avoid any notices from IT Department, it is advisable to file the return of Income by your mother.

Since the sources for the purchases are available and the purchase and sale prices are the same, there would not be any tax liability on the same.

Please ensure that at the time of purchase as well as sales, the value registered is not less than the value adopted for stamp duty payment purposes.

Thanks & regards

- CA  B S Sridhar

B S Sridhar
CA, Chennai
43 Answers
17 Consultations

5.0 on 5.0

i would suggest you better file the return even though there is no capital gain in this transaction.
under AIR - Annual Information Report, banks are required to report  the details of such transactions to the income tax department.
where Cash deposits aggregating to Rs. 1,000,000 or more in a year in any of your savings account in the bank.
Banks are not required to report in cases where cash exceeding Rs 10 lakh has been withdrawn from the savings account but the cash deposits have not crossed the threshold limit during the financial year.
i am supposing all the amount of sale proceeds came to your mother's account.
yes you do need to file the return.
Vishakha Agarwal
CA, Bangalore
431 Answers
56 Consultations

5.0 on 5.0

Yes you have to file your mother's income tax return , coz Property value above 30 lacs must reported in AIR by registrar.
Thus for safe distance from income tax department I suggest you file her ITR, 
Lalit Bansal
CA, Delhi
515 Answers
36 Consultations

5.0 on 5.0

Dear Sir,

You should file your mother's income tax return , because purchase or sale of property above 30 lacs will be reported in AIR by registrar.

Hence, you better file you ITR.

Please feel free to revert in case of any doubts.
Abhishek Dugar
CA, Mumbai
2934 Answers
123 Consultations

5.0 on 5.0

It is better to file returns on your mothers name as the property was on her name to avoid any problems from Tax department.
Shyam Sunder Modani
CA, Hyderabad
1408 Answers
95 Consultations

5.0 on 5.0

Hello Sir,

Based on the information provided by you, it is advisable to file the Income Tax returns as the department may send you a general questionnaire asking as to why a return of income was not filed.

To avoid getting into such complications, it is better if you file your returns.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Rohit R Sharma
Rohit R Sharma
CA, Mumbai
2104 Answers
91 Consultations

5.0 on 5.0

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