Long Term Capital Gain on residential property

Hi, I had a residential house registered in the name of my cousin brother. We live in a joint family. We had purchased the house in 2006 for Rs. 25 lacs and sold the house in 2011 for Rs. 75 lacs. I have opted for a housing loan from LIC in my name for the new house and hence they requested to register the new property in my name alone. However the proceeds of the old house have been utilised to pay the down payment for the new house. But the problem is the new property is not registered in my cousin's name. Please suggest what is the option out for the above problem or will we have to pay Long Term Capital Gain Tax on the sale proceeds received towards old house.

Please advice.

Regards, Hiren Doshi

asked Jan 10 '12 at 18:39 by Hiren Doshi 1111


In case old house was registered in name of your cousin brother only, long term capital gains would be taxable to him. If your cousin has no share in new house, he will be liable to pay income tax @ 20% on long term gains.

Issue may be solved if new property is in joint names of your cousin and you. If cost of his share in new property is more than LTCG, there won't be any income tax payable u/s 54.

answered Jan 10 '12 at 22:00 by pankaj 5.2k320

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The new property is registered only in my name and he does not have any share in it? Is there a way to add his name in Property now?
(Jan 11 '12 at 14:08) Hiren Doshi
Your cousin needs to pay his share in property and his name can be added while registration of property.
(Jan 11 '12 at 15:45) pankaj
Thanks Pankaj, But the problem is that the registration is already done and the original document is with LIC Housing Finance. Please suggest if i can add is his name now to the Property
(Jan 11 '12 at 21:15) Hiren Doshi
If registration is done, its already late now.
(Jan 12 '12 at 12:57) pankaj
Is there any alternative to the situation? Would be of great help. Badly need to find a way out.
(Jan 12 '12 at 13:49) Hiren Doshi
As per my knowledge, there is no way out now. Still I would suggest you to consult an CA/Tax professional, experienced in real estate matters.
(Jan 13 '12 at 15:13) pankaj
Hi Pankaj, Awaiting for ur reply. Please help.
(Jan 16 '12 at 19:28) Hiren Doshi
Hi Pankaj, Thanks for the reply. Would request you to provide with contact details of some good CA having experience in Real Estate Matters.
(Jan 18 '12 at 12:15) Hiren Doshi
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Asked: Jan 10 '12 at 18:39

Seen: 1,172 times

Last updated: Jan 18 '12 at 12:15